Stock Market Commentary for Wednesday, June 8, 2005

The market remains "locked in limbo", albeit with significant volatility, as people wait for a true trend to develop.  Nasdaq's moderate 8.60-point loss on Tuesday was a disappointment, but not really too big a deal and didn't establish a new intraday low below Monday's.

There was some buying enthusiasm in the middle of the morning, but there was also a lot of "sell into the rally" sentiment that inspired momentum traders and speculators to "head for the exits."  This didn't look like a true market-top sell-off, but I'd be a little concerned.

Nasdaq trading volume was moderate (1.90 billion shares), and breadth was modestly positive, with 1.10 losers for each gainer.  This is the epitome of a "treading water" market.

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-- Jack Krupansky