The markets are trading sharply lower today after Cisco Systems, Inc.
(NASDAQ:CSCO) reported earnings that were not nearly what Wall Street
had hoped. Their outlook fell far short as well. Comments made were of a
spending slow down, which sent all technology stocks into a panic.
CSCO is currently trading at $20.71, -3.78 (-15.43%).
Today was supposed to be a quiet day as the bond market is closed in
observance of Veterans Day. However, this earnings report from CSCO sent
the markets lower. Within the first fifteen minutes of the day, the
SPDR S&P 500 ETF (NYSE:SPY) hit yesterdays low at $120.68. This
represented a major support level known as a double bottom. A bounce was
likely and a bounce the market had. Since that double bottom, the
SPY has traded higher as the volume has died out. There is a small in
spirit of bull flag pattern currently in the SPY. It is likely the
markets will float neutral to higher in the afternoon session as the
volume gets lighter and lighter. Tomorrow is Friday and the Federal
Reserve will inject money through POMO. This stands for permanent open
market operations. The Federal Reserve buys bonds from the banks,
infusing cash which is then put to work in the markets. The Friday
effect is likely tomorrow which is neutral to higher.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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