Post-Cisco
The market rose overnight on Cisco’s results, but today has taken a breather after a sharp rise. In the late morning, S&P had recovered some lost ground with a trade up to 865, mostly on short covering after the market failed to take out the session low of 857.50.
As we stated in the Morning Meeting, despite the news from Cisco’s earnings, S&Ps faced some tough resistance. In fact, for the upside to have continued from the start, S&Ps would have needed to be above 881 after the first hour of this morning’s trade.
Nasdaq put in a high for the session at 942 this morning, then traded steadily lower. Clearly, the reaction to Cisco was “overdone,” at least in terms of this morning’s trade.