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Watch the 50-period moving average

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With the major indices looking like they want to go lower until Cisco tells its story, I'm keeping an eye on the 50-pma on the 60-minute chart.

Major Indices 60-Minute Charts

The Dow and S&P 500 60-minute charts look similar. Prices fell below the 50-pma earlier, but have now moved back above. The Nasdaq-100 has held up the best, only piercing the 50-pma for a short period of time. So what could push the markets below their moving averages, other than Cisco?

Dow and Nasdaq-100 Decliners

Today's decline looks to be a group effort. A little bit of software, biotech, computer, and Internet make up the 60 stocks that are trying to drag the Nasdaq-100 down, with only Electronic Arts down over 2 points. 20 of the Dow stocks are down, but only American Express is down over 2 points. Eastman Kodak is the only Dow stock up over 2 points, and Comverse Technology and Ciena are the only Nasdaq-100 stocks up over 2 points. Basically it looks like everybody is on the sidelines.

Jeffrey Canavan
Assistant Analyst

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