Stock Market Commentary for Friday, June 24, 2005

People blamed $60 oil for the sell-off, with NASDAQ falling a barely-sharp 21.37 points, but it was probably more of a technical correction rather than based on true economic and business fundamentals.  I wouldn't count the Spring advance out yet.  Speculators simply noticed that NASDAQ lacked conviction as it poked through 2,100, coupled with a fair amount of "sell into any rally sentiment", and that inspired a reversal, which drew in the momentum traders and speculators for a nice ride down.  It never pays to get too excited by this type of technical move.  Still, closeting 35 points off a new intra-day high deserves at least a moderate yellow flag.

The economic data remains mixed;  no new news there.

Money does continue to flow into domestic stock mutual funds, albeit at a fairly moderate pace.

NASDAQ trading volume was heavy (2.06 billion shares), and breadth was strongly negative, with 2.34 gainers for each loser.  This was a good solid sell-off, although the point decline was not overly dramatic.

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-- Jack Krupansky