Stock Market Commentary for Wednesday, August 3, 2005

Some decent economic data helped to provide a catalyst for a halfway-decent rally on Tuesday.  NASDAQ rose a sharp 22.77 points (+1.04%), setting yet another high for the current advance and for 2005, and finally breaking through the psychological 2,200 level on a closing basis for the first time since June 8, 2001.

NASDAQ trading volume was moderate (1.79 billion shares), and breadth was moderately positive, with 1.55 gainers for each loser.  Despite the nice point-gain, this was not a strong rally due to mediocre trading volume and relatively weak breadth.  Once again, this looks a little like a rotation from smaller-cap stocks to larger-cap stocks.

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-- Jack Krupansky