Stocks quoted in this article:
Technology bellwether Cisco Systems (CSCO – 61-3/8) has often been cited as a stock to watch in order to predict the direction of the Nasdaq Composite (COMP – 3891.1). As CSCO goes, pundits say, so goes the COMP. And until CSCO can convincing rally out of its current trading range, those who adhere to that theory say that the COMP will also be unable to rally above its recent high.
Except for one day in early August, CSCO has traded in a tight range between 60 and 70 for more than three months. The stock was once again rejected at the 70 level on September 1, reaching as high as 69-5/8 before heading lower to close at 68-9/16. In the last five sessions, CSCO has lost over 10 percent. The stock now finds itself in danger of closing at its lowest level since an August 2 close of 60-15/16. If the shares break the bottom of the trading range, 57 may offer some technical support. The 57 region helped to support the shares in April, May, and early August. <