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.

By MSN Money Partner Feb 21, 2014 5:24PM
Image: Stock market (© Corbis)By Alex Crippen, CNBC

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."


More from CNBC

Tags: UBS
29Comments
Feb 21, 2014 6:10PM
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Profound.  It will either go up a lot or down a lot.  Gotta love financial articles.
Feb 21, 2014 6:17PM
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Oooooo, stocks will either go up or they will go down! Shock!

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.
Feb 21, 2014 9:33PM
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The Fed give away will keep on going to keep the market up  and one day we will pay for this bull sh-t!!!
Feb 22, 2014 1:49AM
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Yep, the sun will most likely come out tomorrow. If not, it will be dark.

 

Can I get paid for writing these articles?

Feb 22, 2014 12:54AM
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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.

Feb 22, 2014 4:17PM
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It will be interesting to see how many records Wall Street sets after the Fed Feeding Tube is taken away and the way that things are going for consumers, look for spending to decrease and low consumer spending = no growth.
Feb 22, 2014 9:23AM
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The simple fact that the direction of the market is beyond the control capability of the experts on wall st. is very comforting. It reaffirms the beliefs that wall st. really cannot control or effectively influence the market as many believe. The "market makers" and their wiz kids MBA's and Phd's may invent all kind of exotic schemes in specific segments and sectors but the overall trends remain unpredictable. That's very reassuring.
Feb 21, 2014 11:47PM
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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...?

Feb 22, 2014 4:50AM
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Resistance?  What a bunch of crap!  Only an idiot would believe that stocks move according to charts.
Feb 21, 2014 7:34PM
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Right now we are at the point of a juggling act! Careful not to drop one bowling pin...or is it rings of FIRE!!!! 
Feb 23, 2014 10:10AM
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This Yutz sounds like a  climate change advocate!  Weather is hot or cold blame it on climate change. This article reeks of  CYA! 
Feb 23, 2014 11:47AM
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OK, I finally get it now, maybe up maybe down?  Keep reading to learn less!
Feb 23, 2014 9:55PM
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They either want it to go way up or way down because they make nothing going sideways.
Feb 24, 2014 3:35AM
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either big gains or big losses.. absolutely brilliant !
Feb 21, 2014 11:17PM
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Most likely, BREAK.


Stocks are high and there really is no positive financial/political environment for things to go higher.

Feb 21, 2014 10:06PM
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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.

Feb 24, 2014 1:50AM
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ALL OF YOU THAT BET ON THE STOCK MARKET CRASHING ARE AWAITING FOR INVESTOR TO PANIC THEN A BIG SELL- OFF  AND ONE MORE TIME, LIKE IT HAPPENED BEFORE,  THEY MAKE BILLIONS IN  PUT CALLS AS THE STOCK MARKET GOES DOWN AND THEY SIT ON THE MANSIONS ENJOYING THE MONETARY DEVASTATION  OF THE AMERICAN WORKER AND THEIR 401K, AND THEIR INVESTMENTS LOSSES TROUGH COMPANY STOCKS.
Feb 23, 2014 5:29PM
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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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