Using the S&P500 To Trade Cisco Systems

While it is important to understand price action of individual stocks when investing, market indexes provide strong supporting indications of whether one of its member stocks is likely to go up or down.  Today, we took a look at Cisco Systems, a well known technology company listed as part of  the S&P500 (and the NASDAQ 100 too).

The correlations are remarkable.  Longer term tops and bottoms in the S&P500 aligns well with longer term tops and bottoms in Cisco Systems share price.  We’ve included the weekly, daily and hourly charts of the S&P500 overlaid with Cisco Systems.  In short, market indexes serve as a reliable indicator to support a trade of an individual share, when that share is one of the indexes member companies.  Scroll down to see how the market turns when Cisco turns.  Please tell us what you think and feel free to share.

S&P500 Hourly – Cisco Shown In Green – CLICK TO ENLARGE

SP500 Cisco 601 Using the S&P500 To Trade Cisco Systems

S&P500 Daily – Cisco Shown In Green – CLICK TO ENLARGE

SP500 Cisco D1 Using the S&P500 To Trade Cisco Systems

S&P500 Weekly – Cisco Shown In Green – CLICK TO ENLARGE

SP500 Cisco W1 Using the S&P500 To Trade Cisco Systems