Waiting For Cisco

Stocks treaded water on Monday, as traders awaited earnings from technology and Internet bellwether Cisco Systems due out after the close on Tuesday.

The ISDEX http://www.wsrn.com/apps/ISDEX/ lost 10 to 273, and the Nasdaq slipped 17 to 2173. The S&P 500 declined 3 to 1263, and the Dow lost 16 to 10,935. Volume rose slightly to 1.09 billion shares on the NYSE, but declined to 1.74 billion on the Nasdaq. Decliners led 15 to 14 on the NYSE, and 20 to 18 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, Dell rose after saying it expects to meet estimates, but will eliminate 3,000-4,000 positions over the next two quarters. Priceline announced that Chairman Richard Braddock has been reappointed as CEO.

During the day, Portal Software plummeted 3.25 to 6.03 after announcing that it will lose 19-21 cents a share, instead of the 1 cent earnings expected by analysts.

Proxicom surged 1.70 to 7.36 after receiving a $7.50 cash buyout offer from Dimension Data Holdings, topping an offer of $5.75 from Compaq .

Ciena rose 1.17 to 55.41 on news that tests of its new Core Director product are going well.

Traders continued to pile into NVIDIA , sending the stock 4.41 higher to a new high of 93.93.

Emulex , up .69 to 43.99, announced a partnership with Cisco .

Microsoft gained 1 to 71.75 on new that its Windows XP product could hit store shelves as soon as Oct. 29.

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

A potential double top on the S&P 500 and the Nasdaq, and both occurring on cycle turn dates (May 2 and May 7)? We'll see if sellers show up this time. The indexes have broken their uptrends two or three times on this rally, only to head higher (see first three charts below). First support is now 2150 on the Nasdaq, 1250 on the S&P 500, and 10,900 on the Dow. The S&P and the Nasdaq have been stuck in a range for some time now; a break of either boundary of the range should dictate near-term direction. Those levels are 2000 and 2252 on the Nasdaq, and 1200 and 1300 on the S&P. The Dow is holding above its main downtrend line (fourth chart), but is in an area of powerful resistance. A close above 11,035 would be bullish.

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.