Stocks approaching a make-or-break point
A notable trading executive says the S&P 500 is approaching a significant band of resistance. What happens after that will say a lot.
Art Cashin said the benchmark Standard & Poor's 500 Index ($INX) is approaching a key technical level that could spark either big gains or big losses.
Cashin, UBS' (UBS) director of floor operations at the NYSE, told CNBC's Bob Pisani around midday he expects a "great flirtation" with the S&P's old highs. He sees a significant band of resistance around 1848 to 1851.
"If they approach that and get repelled again you could get a pretty severe pullback... If they get through that you may get some stampede buying from short-coverers and others who say, 'What is it going to take to get this market down? I was wrong. Let me get it back.'"
The bottom line, said Cashin, "If we can break out, that would be great. If we press against it and fail, that could be very troubling."
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This has got to be one of the DUMBEST articles I've seen, MSN. Even the writer knew that they were out of their element; otherwise, they would have posted their name! Instead, the posted "By MSN Money Partner".
MSN, you're losing all credibility.
Yep, the sun will most likely come out tomorrow. If not, it will be dark.
Can I get paid for writing these articles?
Profound indeed, another financial genius.
Amazing how someone can write an article, get it printed, have it read and followed by
thousands of people and say absolutely nothing.
People who have tried to make money based on resistance levels have found out over time it doesn't work. Might as well ask the old farmer's almanac or Punxsutawney Phil for advice.
I probably can't really disagree with that, but I try to build for the EOY...
What happens on a month to month or even quarter, can have little depression on what goes on over a 5-10 year period....
The game isn't really played on a weekly basis, (not YOU) but some seem to think that way...?
most of you are not that aware of technical (chart) analysis or the new wave of algorithmic trading. don't blame art for the author's failure to expound upon his market wisdom.
art is referring to the new, high-volume use of SPY's and historical market technical analysis which is simply beyond your ken ... ignore the potential for this major negative inflection point at your investing peril ...
Most likely, BREAK.
Stocks are high and there really is no positive financial/political environment for things to go higher.
We could be approaching a higher high in the 1850-1875 range, similar to some past patterns.
Or if we had a run at a head and shoulders, we may be looking at 1900, to give us half of the equation....
Then I would look for the correction of about 75-100 to be able to form the other half...
Keeping in mind we could be heading for higher highs...But probably not until the 3Q.
Not a bad synopsis by Fats....And the replies are a good mixture....
To the victor go the riches, because this is not a war.....But sometimes a high stakes game.
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Stocks are facing some serious resistance as the bears tear into the market's respite.
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