NASDAQ 100 and Cisco Systems

The Nasdaq 100 is like the other US-Indices at a critical level around the November highs. It had two very strong sessions but the volume was not impressive. Furthermore the Nasdaq 100 is near its 2007 highs. That means very strong resistance ahead and after today's disappointing jobs report the futures are indicating a lower open. So could that be a potential double top? Yes definitely, but as I mentioned in a post a few days ago, the saver play would be to short if the lows of the last two weeks are broken.

The Cisco chart shows a long term sideways range. From the top 2007 till the low 2009 it had a  downtrend channel and since April 2010 Cisco also established a similar downtrend.

In a shorter timeframe Cisco could bottom out just above the $ 19 level. A fibonacci level is around $ 19 and also bottom trendline of the channel is just around $ 19. But that does not mean to get aggressive long because it could drift further down. On the other hand shorting is also risky too because it has support around $ 19 and is oversold.