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RealTime IT News

Bulls Take The Day Off

Stocks took a breather Monday ahead of some key earnings reports and digested Friday's strong gains.

The ISDEX http://www.wsrn.com/apps/ISDEX/ slipped 1 to 173, and the Nasdaq gave back 4 to 1912. The S&P 500 declined 5 to 1179, and the Dow lost 40 to 10,382. Volume fell to 849 million shares on the NYSE, and 1.1 billion on the Nasdaq. Decliners led 17 to 13 on the NYSE, and 20 to 15 on the Nasdaq. For earnings reports, visit our earnings calendar at http://www.wsrn.com/apps/earnings/internet.xpl and reported earnings at http://www.wsrn.com/apps/earnings/ireported.xpl. For after hours quotes and news, visit our after hours trading site at http://www.afterhourstrading.com.

After the close, Ulticom gave back some of its strong gains after matching estimates and announcing a new CFO.

During the day, a 3% drop in existing home sales had investors wondering if strength in the housing market was limited to new home sales.

Homestore.com plunged 2.98 to 18.60 on a Salomon Smith Barney Neutral rating.

eBay dropped 2.61 to 56.40 on a negative article in Barron's.

Micron rose 1.81 to 40.35 ahead of a company presentation tomorrow. Sun Microsystems fell .47 to 14.50 ahead of a mid-quarter update on Wednesday.

Vignette surged 1.06 to 7.93 on reports of an IRS contract.

Excite@Home fell .09 to .41 on news that it could be forced to make $50 million in payments by Friday. The company said it would have an inverse impact on liquidity and ability to fund operations if forced to make those payments.

Cisco recovered from profit-taking to close above its 50-day moving average at 17.98, down .23 to 18.02 on the day.

Microsoft rose .17 to 62.22 despite confirming that the introduction of Xbox in Japan will be delayed.

Rambus surged 1.70 to 7.37 on news that its relationship with Intel remains intact.

Some technical comments on the market: Note: We include charts in the technical market commentary. If you can't get the charts via the e-mail newsletter version, try this link: http://www.afterhourstrading.com/column.html

Nothing more than a minor pullback from Friday's gains so far. The Nasdaq formed a doji today, trading higher and lower only to finish close to unchanged, showing indecision and the potential for a reversal. We'll link to a bigger Nasdaq chart to show some of the trendlines that are at stake here: http://cache.wsrn.com/images/AHT/compx0827.gif. The Nasdaq pierced a couple of those lines today but then recovered. We'll continued to use 1883 as critical support here, which should include the Nasdaq's recent uptrend line tomorrow (see first chart below). 1934-1941 could be tough resistance, and 1934 is where the index turned back today. 1960 is next resistance after that, and then the main downtrend line just under 2000. The S&P 500 is sitting between support at 1170 and resistance at 1203 (second chart). The Dow (third chart) is also stuck in a tight range between 10,500 to the upside and about 10,375 to the downside. Tomorrow is a potential cycle turn date, and some are saying it's an important one.

Special report: For a free introduction to technical chart patterns and an overview of last year's action in the stock market, visit http://www.internetstockreport.com/guest/article/0,1785,2571_500051,00.html.