Subdued Before CPI

Despite quite a bit of green on the screens, it was a downright boring day. The market felt like it was being held hostage in front of the important CPI report in the morning.

Not only did we have contained price action, but volume was very light. Nasdaq volume was substantially under yesterday's level, and many of the popular big-caps like Google (GOOG) and Apple (AAPL) are well below their normal levels.

The bulls are going to tell us that we were able to build a bit on yesterday's intraday reversal is a bit positive, while the bears will argue that the low volume and complacent action are setting us up for another major pullback.

The charts of the major indices certainly could use more work. We have the potential makings of a bottom, but it is too early to leap to any conclusions. The one thing we know is that the CPI tomorrow is likely to serve as a catalyst.

If you go simply by the charts, the likelihood is that it will be a catalyst to the downside. But these economic reports are always a coin toss. A lot of folks are simply waiting for the news, as the light volume made quite clear.

Have a good evening. I'll see you tomorrow.

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James "Rev Shark" De Porre is the founder and CEO of Shark Asset Management, an SEC-registered investment advisory firm. He also operates sharkinvesting.com, an interactive online community that serves and educates active investors. De Porre holds business and law degrees from the University of Michigan, is a member of the Michigan Bar Association and a former tax attorney and CPA. He lives in Anna Maria Island, Fla., with his wife and two children.Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Rev Shark appreciates your feedback; click here to send him an email.