OK then, looks like we have a change in the scenario as the major indices decided to climb higher today in the last hour of trading. Actually the broader index ($SPY) bounced off of the lows that we had just tested last Thursday. That makes the fourth successful test of that support and the volume on the buying going into the close suggests that there were lots of orders to buy. That’s not been the norm lately and so such price action validates that the bull isn’t dead, yet…

Wholesale prices fell 2.8% in October. The street was expecting a 1.8% slide but instead was handed the largest monthly decline in over 60 years. The 2.8% overall decrease was the third consecutive month of declining wholesale prices. Over the last year, the Producer Price Index has increased by 5.2%, falling from the 8.7% annual pace reported in September. When you strip out food and energy the PPI rose by 0.4% in October which is higher than the expected 0.1%. So we might love that $2 a gallon gas, but what’s it really costing?