Over the past two weeks, the S&P 500 has been setting record highs like it's going out of style. But Jonathan Krinsky, chief market technician at MKM Partners, says it's time to pause.
"When you see very optimistic sentiment, and you see the S&P hitting extreme overbought conditions, we think the risk-reward from that sets up to the downside—very little reward on the upside and bigger risk on the downside," Krinsky said on Tuesday's "Futures Now." "And if you do have some money to put to work, my point is really that you're going to likely see a better entry over the next couple of weeks."
The first thing that concerns Krinsky is the market sentiment. In his view, investors have simply gotten too bullish.
"Lot of people are getting rather optimistic here, and that's one of the reasons that we're a little bit concerned," he said. "If you look at the latest ... survey, Investors Intelligence actually has the most amount of bulls we've seen since October of 2007. And meanwhile, there's actually less bears than there were in October 2007."