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There's nothing worse than range-bound markets. They can suck you in long or short only to spit you back out with a series of small losses - if you're lucky. But, perhaps we're moving back to the primary bear trend meaning the recent rally was an awakening [like the movie] that didn't last.

PPI inflation data for July came in at 1.2% [annualized at, gulp, 14%] while consensus forecasts by economists [are they ever right?] were for only .3%, but there's another story. Just as investors were overly long commodities and short the dollar last month now they're heavily invested in the opposite manner. Overdone again? Sure, so it didn't take much to stampede the herd in the opposite direction once again.

Breadth is as negative as one would expect given the headline index declines. However, volume isn't high but is little comfort to those eying their two-day performance results.

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Source: Wednesday Outlook: Bear Attack?