By Paul Cherney Earnings estimate reduction for Cisco Systems (CSCO) and negative comments including earnings estimate reductions for some components of the integrated telecom group (prominent members include VZ
, SBC), rekindled doubts about being long in the first quarter reporting season and kept sellers in command in Tuesday's session.
Until the markets demonstrate the ability to overcome resistance levels, I have to assume sideways action with a negative bias. Investors still have a reluctance to commit to the long side ahead of the first quarter earnings reports. But I would change my opinion if the NASDAQ closed above the 1805 level, or if the S&P 500 closed above 1136.
Immediate NASDAQ support is now 1733-1696. The S&P 500 has a focus of support 1119-1113. Immediate intraday resistance for the NASDAQ is 1770-1803, then 1808-1822.
The S&P 500 has immediate resistance 1124-1136, with a focus 1126-1133, then 1142-1157. The S&P 500 has immediate support 1124-1106, with a focus 1119-1113.
There was one potentially good development in Tuesay's market: Volume started to push higher, maybe the sellers are getting anxious to get out and there will be some sort of a capitulation. Cherney is market analyst for Standard & Poor's