Stock Market Commentary for Thursday, June 23, 2005

The market remained "locked in limbo" again on Wednesday, waiting for the Fed FOMC announcement and economic outlook a week from Thursday and any kind of signs of how the economy is likely to shape up six months from now.  NASDAQ eked out a slight +0.96-point gain as traders and short-term speculators remain reluctant to place any big bets until it becomes clear whether NASDAQ has the oomph to hurdle well clear of the psychological 2,100 level.

NASDAQ actually did poke above the magical 2,100 level for a few minutes in the morning, but trading volume is too light and there is a fair amount of "sell into any rally" sentiment in the market.  That led to a brief sell-off, but by 11:10 a.m. NASDAQ was on its way to recovering for the rest of the day.

NASDAQ did open up moderately (about 6 points) and closed well below that opening level, but it was too modest an opening strike to be a full-fledged market top.  Still, that behavior warrants at least a modest yellow flag.

There was very little economic data to speak of.  People want to hear what the Fed FOMC has to say next Thursday.

NASDAQ trading volume was light (1.71 billion shares), and breadth was modestly positive, with 1.12 gainers for each loser.

Click here to read the entire column.

-- Jack Krupansky