Shares of CSCO have broken our upward trending support and traders need to be alert here. CSCO has done this once before and rallied right to our resistance soon after. OK to play this move to the downside (short) with a stop just above $54.
NASDAQ Composite Chart - 60-minute interval.
The breakdown in CSCO has accelerated a move to the downside in the NASDAQ and this was something we were alert to yesterday.
Dow Industrials Chart - 60-minute interval.
The selling in the NASDAQ is now starting to spill over to the Dow Industrials as this index has started to try and test this morning's lows. A break below the 10,450 would be reason enough to start locking in some profits and keeping losses small in some of the "old economy" stocks we've talked about recently (IP, GP, CAT, AA). All in all, some of the old economy stocks are holding up very well, but we know all too well the effects broad market activity can have on even the strongest of stocks.
30-year Treasury Yield Chart - 60-minute interval.
It's the 30-year Treasury yield that has us really wondering what's up? In the past 30 minutes, yields have fallen and bond prices move higher. Be alert into the close and we'd be willing to hold a short position overnight on Cisco