Markets are caught in the summer doldrums Wednesday, trading without much direction. Traders seem to be ignoring today’s stronger-than-expected U.S. retail sales report. The S&P/TSX composite index is up just 11 points at midday to 7,365.

Volume is average with 111.6 million shares changing hands. The buying volume is almost double the selling. Market breadth is narrower, with winners holding a 49:46 edge over losers.

Technology stocks are stronger, thanks to some positive analyst talk. Consumer discretionary stocks are higher on the heels of the retail sales data in the U.S. And, there are gains in golds and financials. Diversifieds, energy stocks and industrials are all weaker, though.

The tech group is making gains after analysts upgraded a couple of stocks in the sector. Nortel is not really participating in the rally, flat on decent volume of 8.6 million shares. However, there is strong buying in Cognos and Zarlink Semi. Leitch Technology is backing off recent gains.

The banks are all making some solid gains today on the prospects for economic recovery. Royal Bank is leading the way, up 1%. There is also strength in TD Bank, with CIBC and Scotia up about half as much.

Canico Resources is a big winner today, up about 17% after it increased deposit estimates for one of its Brazilian nickel mines.

Other gainers include Northgate Exploration, PetroKazakhstan, Sino Forest, Royal Group Tech, VSM MedTech and Rogers.

A couple of yesterday’s big winners, Extendicare and Ivanhoe Mines, are both backing off today.

There is also weakness in Gabriel Resources, Associated Brands, Wheaton River and Fairfax Financial. And, ATS Automation Tooling Systems is down 2.7% on news that it earned $2.2 million in the second quarter.

In earnings news, the Shiningbank Energy Income Fund said it earned $23.9 million in the second quarter.

Royal Host REIT saw its earnings drop to $636,000 in the second quarter.

In New York, traders were unmoved by the strong retail data today. Instead, worries about the bond market are helping sour sentiment, pushing the Dow Jones industrial average down 48 points to 9,262. The S&P 500 is down six points to 984. The Nasdaq composite index has dropped four ticks to 1,683.

The small cap traders are pushing the S&P/TSX Venture index up just over a single point to 1,226. Volume is strong at 22.4 million shares. Photochannel Networks is leading the trade, up a penny to 11.5¢ on 4.6 million shares.