What we found more discouraging was that market closed near its low for the day. Volume on the NYSE was 30% below the 10-day average, 29 of 30 Dow and 465 of S&P 500 stocks closed lower.
On 8/3/07 the S&P 500 did close near its current price, and rallied back strongly the following day. However, the low close Tuesday puts increased pressure on CPI data released in the morning Wednesday. The market seems to be hinging on our inflationary risks, and higher than expected CPI would most likely quell any hopes of a rate cut.