Stock Market Commentary for Tuesday, July 26, 2005

Monday was a slow summer day of technical trading, with NASDAQ falling a moderate 13.00 points, as short-term momentum speculators lost patience and bailed out while people wait for the next slug of money inflows to kick off yet another short-covering rally.  The market opened with fairly neutral sentiment, but when a modest mid-morning rally stalled, traders and short-term speculators took that as the cue to reverse and try to push the market down.

The economic data was fairly decent, but apparently people are discounting current strength and worrying that there might be some weakening in the months ahead.

NASDAQ trading volume was very light (1.53 billion shares), and breadth was moderately negative, with 1.63 losers for each gainer.

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-- Jack Krupansky