Stock Market Commentary for Friday, April 29, 2005

The disappointing Q1 GDP report certainly helped to give the market a negative tone, but the decline was still strictly technical in nature.  Nasdaq's sharp 26.25-point decline was quite disappointing, but was primarily the result of traders and speculators simply once again trying to test the recent intra-day low.  They did succeed in pushing the market down to that former low, but not much lower (a mere 19 cents).

Although disappointing, the GDP report tells us nothing about the pace of the economy or inflation going forward.  This point seems to be lost on a lot of people.

Nasdaq trading volume was moderate (1.93 billion shares), and breadth was strongly negative, with 2.93 losers for each gainer.  This wasn't quite a heavy sell-off since volume was still not very heavy.

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-- Jack Krupansky