Cisco results are due Wednesday and what CEO John Chambers says could spark the next leg higher or trigger a correction.
We know that sounds pretty theatrical but lately the market has shown a flair for the dramatic.
And the reason we put so much emphasis on Cisco is -- Cisco is one of the first major technology companies involved in enterprise spending to report results.
Typically its performance and outlook are used as a barometer for corporate spending on things like routers and switches - the stuff of technology infrastructure.
For the quarter, on average, analysts expect Cisco to report revenue of $9.4 billion, up from $9.1 billion a year earlier, according to Thomson Reuters.
But as you know it’s not just about profit – it’s about s outlook.
The Street is hoping to hear Cisco customers, especially phone companies and large corporations are making investment in growing wireless and Internet traffic.
What should you anticipate?
Investors seem to believe that Cisco results will reinforce hopes that corporate spending is back after two years of dismal growth.
"Fundamentally, things are strengthening for Cisco, and despite some lingering component shortages, we believe the company closed its January quarter on a positive note," says RBC Capital Markets analyst Mark Sue.