Market Commentary for Wednesday, March 2, 2005

The nice little market "pop" on Tuesday was simply the flip side of the decline on Monday. Nothing has really changed as far as economic or business fundamentals, so both days can be chalked up to "technical fluctuations". Overall, the market is still in "drift" mode, especially as people are anxious and uncertain about Friday's employment report.

Nasdaq trading volume was moderate (1.94 billion shares), and breadth was moderately positive, with 1.50 gainers for each loser. This was not a strong rally. The gain was nice, but not particularly impressive, and volume and breadth were so-so. This was simply a recovery from the negative sentiment that was artificially pumped into the market on Monday.

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