Stock Market Commentary for Tuesday, June 7, 2005

Despite the chatter on Monday that the market is waiting for Greenspan to speak, it remains in a limbo state awaiting an accumulation of money flows (in or out) that would cause it to move in a manner contrary to the expectations of traders and short-term speculators, who like to see stocks trade in a range or follow momentum.

Nasdaq continued Friday's sell-off in the morning, but hit an intra-day low very shortly after 11:00 a.m. and then recovered for the rest of the day, closing up a modest 4.33 points, and 9 points above the morning low.

The good news is that there was no continuation of the selling pressure that was seen on Friday.

Nasdaq trading volume was very light (1.52 billion shares), and breadth was modestly positive, with 1.17 losers for each gainer.  This is the epitome of a "treading water" market.

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-- Jack Krupansky