Breaking below the key psychological $30 level has sloidified my opinion that we are in a major tech bear market. Valuation Compresion of p/e ratios have drastically reduced and growth prospects are validated by company after company issuing lower future prospects and for the 1st time in its history Dell announced that it will layoff workers.
Technicals show that a 2470 we are sitting at the breakout level of the down trend line from the Sept 2000 high of 4,000 on the Nasdaq.
I now have a Nasdaq target of 1,900 and a Cisco price target of $20 set for the next month. The 2 Fed rate cuts have proved to be too late for the hard landing the economy is in and the capitulation that was thought to be made in late December did not occur. The 1st 3 weeks of January only prved to be a dead cat bounce.
The lack of buyers and not the conviction of sellers is what's driving this market lower and until the economy improves things will only get worse for Cisco..