CSCO disappoints

After the bell CSCO disappointed investors with lack luster earnings for the quarter. Today while watching the market I saw cracks appearing in techs and financials again. BIDU the high flyer is almost 1/2 off its 52 week high. I have been ranting about these high flyers since december and have noted repeatedly of the massive run up on earnings expectations which these companies can't ultimately deliver on.
What has happened in tech especially is a concentrated money flow into a few names, which unlike the internet bubble led to a broad nasdaq rally. These few names have been getting the bulk of the run up of the last 2 years, noticably GOOGLE, APPLE, RIMM, BIDU, FSLR, VMW are just a few. What has happened here is just like looking for a dream job, alot of applicants for very few vacancies.
The break today of 1332 on the S&P was vital for the bulls and in the end it failed to hold miserably. Where do we go? well a test of the lows from 3 weeks ago more than likely will be tested. What happens on that test is the more important question to ask. With a weakening economy and disasterous January for the markets a test of the lows might trigger more selling which hopefully initiates a capitulary climax putting in a tradeable bottom.
Lets see how the market trades thursday and friday, this week has been very slow and we are winding up for a move.

Numbers to watch tomorrow
S&P 1318 support to be watched below that 1296. 1296 would be an S&P futures buy.
OIL in a full bear flag expect a test of $82 then $80
Talk to you tomorrow

Mid day update

Well the market volatility has definitely slowed down this week. Yesterday 370 point drop was nothing to sneeze at and I was wrong to assume that this week would be an up week. I still think the bulls will make a stand at least into the resistance level again which I missed it by 5 point last week WOW. The beauty of technical analysis!!!!!
Oil looks to be set to take a pullback but honestly I dont think we pullback large enough in the bigger picture. Commodities without a doubt are stretched and are closer to a top than anything else. Google! how the might has falled. Google will be the other side of $400 this year for sure. I am predicting GOOG to be close to 360 at its lows some time this year. Apple is another one I am sure might head back sub $100 if the market get weak as I expect.
2009 will be a very bad year for the markets I can see it setting up a mile away. Sub 1000 on the S&P and sub 10k on the DOW is definite.