Stock Market Commentary for Thursday, June 9, 2005

The market remained "locked in limbo" on Wednesday.  There's enough uncertainty about the economic outlook that many people (including myself) really do want to hear what Greenspan has to say about the economic outlook today (Thursday).  I imagine he'll be fairly exuberant.  Meanwhile the official White House forecast is a tad less exuberant.

Nasdaq's moderate 6.98-point decline was another disappointment, but this is what happens when short-term momentum speculators get tired of waiting around for the next up-leg to take off.

It was a bit disheartening to see Nasdaq open higher and then reverse.  This is called "sell into the rally" sentiment.  It can be associated with a market top, but is also seen whenever the market pauses before a continuation of an up-leg.

Nasdaq trading volume was light (1.63 billion shares), and breadth was moderately negative, with 1.37 losers for each gainer.  This is the epitome of a "treading water" market.

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-- Jack Krupansky