Oh, CSCO
Impact from Cisco’s earnings is being felt this morning in both the S&P and NASDAQ futures, with S&Ps trading down 490 at 1351.40.
Cisco missed earnings expectations by a penny. In addition, there were some bearish tones on the conference call, including on the inventory backlog-front.
For S&Ps, today we have resistance on the upside at
1352.50, then 1355, and a band from 1358 to 1360.50. We need to get above 1358 and sustain trade above that to get out of immediate danger.
On the way down, we have 1350.50, which is the low two weeks ago. We also have a small band of resistance from 1350.50 down 1348. Then we have a small area of resistance at 1345, a critical at 1343, and then 1340.50.
NASDAQ was trading down 50 at 2440. One silver lining: we never traded to limit down overnight. In addition, we are holding above Monday’s intra-day low of 2426.
We have a first support zone between 2430 and 2420. In this zone will be Monday’s low and the limit down at 2425. If we fail to hold here, look for a move to 2360.
We have resistance from 2455 to 2470. 2468 was yesterday’s intra-day low. If we get above 2470, look for a gap fill to come in at 2490, and a move up to 2520. We have resistance between 2505 and 2530, which should be a very key area.
The Dow continues to have problems at 11,000. The longer we fail to close above 11,000, the more worried technical-traders will become, and it could lead to a retracement back below our key level of 10,600.