Yesterday’s positive stories seemed to attack all of the negatives that led to the market decline in recent days. Two well bid for auctions in Ireland and Spain gave the Euro a boost and put some pressure on the hot Dollar. The lack of M & A interest was fired up by Potash/BHP. Earnings had been a driving force that was mostly behind us. Home Depot and WalMart provided a positive earnings outlook. The deflationary threat was dealt a blow from the solid pop in the PPI. The year-over-year core PPI rose 1.5% in July versus 1.1% in June. That move eased some of the deflationary fears, pressuring the Dollar. A weaker dollar helped lift commodities and basic materials. Housing Starts and Permits were shy of expectations, but that should help keep inventories under control. The big number was the 1.0% gain in Industrial Production. The strength came from Business Equipment, Computers, and Electronics. These are great capital expenditure names, helping lift the outlook for the economy. For the moment, it helped defer the “double dip” talk. Technically, the very short-term was oversold and we were looking for a bounce. The S & P stalled at 1087, the 10-week moving average, but once through pressed to the overhead supply at 1100. One day’s good news isn’t about to change the prevailing market direction, but the fact that all the news hit on all cylinders was sufficient to encourage the bulls into action. While it was a good bounce, it will take a lot more than one day to keep the bears at bay.