Hello, Cisco
S&Ps are trading up 5.70 at 1169.20 on bullish news from Cisco on its orders and earnings outlook. The key today for both the S&Ps and the Nasdaq will be if the market can follow through on this optimistic news.
For today in S&P futures, we view 1165.50 to 1170 as a neutral zone. Above 1170, we have resistance between 1170.50 and 1173. If we get above 1173 we think the market will retrace the FOMC downdraft, and trade up to the 1182 level.
On the downside, through our neutral zone of 1165.50 to 1170, the first target becomes unchanged at 1163.50, followed by a choppy move toward the 1158 level. We have support between 1161 and 1158.
Nasdaq is trading up 24.50 at 1526.50, thanks to Cisco. On the upside, the first stretch of resistance is from 1530 to 1535. Above 1535, we’re looking for the zone between 1545 and 1552 to trade. That zone will also be treated as resistance.
On the downside, the first line of support would be between 1522 and 1515. Below 1515, we would look for a trade down to a 1505-1500 level.
The Dow continues to confound us as we finally had the key close below 10,200 this week. But the next day it popped right back up. Yet with yesterday’s decline, we settled at 10,229, and the bearish tilt of this market is still with us.