Pretty loud after hours session after CSCO’s massive sell off. What makes Cisco selling so significant is the fact it is a large component of the index’s. You can see the Nasdaq and ES_F reaction in the chart to the left. The ES_F fell from 1214 to 1206 in about 30 minutes. Cisco at one point traded under 21 bucks a share, before buyers came in and took the price up to around 21.42.
The highly correlated nature of our markets is very apparent when large cap stocks fall 10% or more, most techs fell with CSCO just for the hell of it. The dollar was the driver today once again, the close green on the dollar leads me to believe the bulls are still resilient.
Tomorrow is going to be interesting with 1206 short term support and 1215 being upper resistance. Today’s highs were 1217 thus tomorrow the upper line in the sand will be 1217. Today’s lows were 1201.75 before
the robots jumped back into on the bids as the dollar was sold relentlessly leading up to and following the treasury auction. Today’s volume was rather heavy today given 3 month averages, the spy traded 222 mil shares vs 194 mil average, the majority of this volume was on the bid during the first 30 minutes of trading. The upside volume of course was light and violent.
Today was a draw, i would say the bulls and bears put up quiet a fight, tomorrow i expect a lot of the same action as we have yet to confirm new highs or new lows on the month.