The Stock Indices produced a surprise rally today after a CPI number that suggested a continuation of higher interest rates and the assurance of a possible deeper recession. While some think it was short covering, I am not so sure. Of course, if it was short covering, I contributed to it also.

The Briefing outlines the tactics I used today to exit my short positions and analyzes the internals of the rally, which were strong in volume and not so strong in Breadth. If there are higher prices tomorrow, it will be important to see the internals stronger than today. The information the market gives us in terms of price development and price structure should clear up a lot in terms of the next greater degree time and price move.