The market continues to lose traction. Eight sectors declined in the S&P 500 yesterday, while two of three growth sectors (Communication Services (XLC) and Consumer Discretionary (XLY)), as well as Consumer Staples (XLC)  moved higher.

Backpedaling

Suddenly, the Fear & Greed Index is closer to the former than the latter. I don’t think things are that dire, per se, but it might be good to let weaker hands spy the exits.

Market internals are turning lower as decliners swamped advancers.

Down volume on the NASDAQ Composite is a dash to ring the register. As I wrote yesterday, investors try to hang onto big winners until the calendar turns for several reasons, but the chief one is taxes.  You have to believe a stock will decline if you are willing to take the hit now instead of mitigating it in a few weeks.

Market Breadth	NYSE	NASDAQ
Advancers	1,035	1,645
Decliners	1,769	2,651
New Highs	62	122
New Lows	30	94
Up Volume	1.1 billion	2.71 billion
Down Volume	2.13 billion	3.44 billion

Oversold Names

Oversold names continued to find buyers.

The market is still tracking the path of a soft landing.

The Consumer Price Index (CPI) report isn’t expected to move the market much. However, there are questions about housing and used cars, even though total automobile inventories have begun to build.

Today’s Session

This morning’s CPI report saw the pace of inflation to come in as expected.  Although it is still well above the Fed’s target consensus seeks, the FOMC is cutting next week.

Stuff that wealthier folks are buying continues to see outsized cost increases from a year ago:

• Lawn Care +6.3%y/y
• Financial Services Fee3s +6.1%y/y
• Pet Care +12.1%y/y
• Watches +7.4%y/y
• Airline Fees +4.7%y/y
• Food Away from Home +4.7%y/y

Main Street is still struggling as the cumulative inflation gained even more speed.

Price of eggs +37.5% year-to-year and +8.2% month to month.

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