Cisco fell after hours on Wednesday after the company said that visibility remains limited, capping a weak day for stocks.
The ISDEX http://www.wsrn.com/apps/ISDEX/ fell 3 to 155, and the Nasdaq lost 25 to 1812. The S&P 500 declined 6 to 1083, and the Dow fell 32 to 9653. Volume declined to 1.7 billion shares on the NYSE, and was unchanged at 2.1 billion on the Nasdaq. Decliners led by 19 to 11 on the NYSE, and 23 to 12 on the Nasdaq.
After the close, Cisco
fell more than a point after beating estimates handily – but then only giving guidance for one quarter because visibility remains limited. Nasdaq futures were down more than 1%.
During the day, the accidental early release of Cisco’s better-than-expected numbers didn’t help the market much.
plunged 41% after losing EarthLink’s business to Google.
hit a new 52-week low on accounting concerns.
plunged on debt rating concerns.
fell back below $10 on a Salomon Smith Barney Neutral rating.
surged on its earnings, WebEx
plunged 29% on its report. Maxim
also ended down.
Some technical comments on the market: Note: To see the charts in the text email newsletter, click on the internetstockreport.com story link at the top of the newsletter.
The Nasdaq (first chart) and Nasdaq 100 (second chart) both broke declining trendline support today; that’s not easy to do, and usually pretty bearish. 1800-1820 may cap any bounce tomorrow, and 1750-1780 looks like next support. The S&P (third chart) continues to find support at a declining trendline. That line will be at 1075 for tomorrow, and if it breaks, it doesn’t look like the correction will stop at 1052. ADX, the trend strength indicator, continues to turn up hard in that chart, which is bearish; the trend is not likely to end until that indicator reaches the high 30s or low 40s. Resistance is 1093-1101. The Dow (fourth chart) faces tough resistance in the 9730-9775 range. Support is 9600 and 9500-9520. Finally, another look at gold. The HUI (fifth chart) put in a bearish engulfing today – but the index recently completed a bullish three white soldiers candlestick pattern. 81-82 must hold to preserve that bullish pattern. Gold futures (fourth chart) broke out of a two-year trading range yesterday, but were beaten back today at the critical $305 level (the chart does not include today’s trading). $293-$295 should now be support. A real stalemate between gold bulls and bears at these levels, but it’s been a very nice run, with mining stocks returning 50%-100% since late November.
Special report: For a free introduction to technical chart patterns, visit http://www.internetstockreport.com/guest/article/0,1785,2571_500051,00.html.