Upside Is Limited for the Nasdaq

On deck to report Wednesday are Altera (ALTR Quote), Juniper Networks (JNPR Quote), Novellus (NVLS Quote) and Qualcomm (QCOM Quote).

Altera, a maker of chips used in routers and switches, is expected to report EPS of 19 cents. It's rated a hold according to ValuEngine, though it's trading 26% below its fair value of $25.03. The weekly chart profile is flat, with the five-week modified moving average at $18.85, and the 200-week simple moving average at $18.55.

According to Thomson/First Call, 22 Wall Street analysts have a median price target of $22, with a high target of $30, which lines up with my model. Quarterly and semiannual value levels are $17.04 and $15.39, respectively, with monthly pivots of $18.56 and $20.00, a quarterly pivot of $18.78, and quarterly and annual risky levels of $21.68 and $27.87. The long-term investor should add to this position on weakness to my quarterly value level of $17.04, and reduce holdings if it rises to my monthly pivot of $20.00.

Internet gear maker Juniper Networks is expected to report EPS of 20 cents. It's rated a hold according to ValuEngine. It's 40.6% undervalued, with fair value of $36.38. Momentum is declining on the weekly chart -- the five-week MMA is $22.27 and the 200-week SMA is $17.99. According to Thomson/First Call, the median analyst price target is $28, with a high target of $32, which is a weaker profile than my model produces. I show a semiannual value level of $17.75, with monthly risky levels at $24.48 and $25.06. Juniper could be quite volatile following its earnings report. On a positive reaction to earnings, the stock should end the week above $22.37. On a negative reaction to earnings, it could fall to $17.99 or $17.75.

The semiconductor equipment maker Novellus is expected to report EPS of 16 cents. It's trading 21.5% under its fair value of $35.06, but ValuEngine rates it a hold. The weekly chart shows rising momentum, with the five-week MMA at $25.77 and the 200-week SMA at $30.61. According to Thomson/First Call, 18 Wall Street analysts have a median price target of $27, with a high target of $40, which is slightly weaker than my model. I show quarterly and monthly value levels of $24.26 and $23.54, making Novellus a stock to consider buying on weakness. A key level to hold following earnings is my monthly pivot of $26.99.