Headwind Could Be Striking

After the market closed today, CSCO reported its latest quarterly earnings and gave some surprising unsettled news about its business outlook for the coming quarter. In addition, the biggest surprise is the 5% workforce reduction (layoff) of 4000 workers worldwide. This is one thing no one is expecting, and for CSCO to take such drastic and sudden action, one must question how bad the global economy really is?

From the following chart on the market indices, it already shows some sign the market is ready to pull back. The last time the DJIA made a new high, it did not receive the Dow Theory confirmation from the DJT. Furthermore, continue deterioration from the advance/decline and the new-high/new-low re-affirms internal market weakness is developing. In the video, a look at some of the stocks along with CSCO that could drag the market down.


Indices:



SP500 & DJIA:



Nasdaq:



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Disclosure: Long AAPL & NFLX