‘Big Brick Wall’ for Stocks: Zimmerman
Online Producer
All technical indicators suggest the stock market is poised for a crash, Walter Zimmermann of United-ICAP said Monday.
On CNBC's "Fast Money," the chief technical analyst said that a look at the bigger picture shows a "bearish rising wedge" in the stock market charts.
"Sentiment is definitely too bullish," he said, noting that investors have not been this bullish for this long since 1997, during which the stock market kept making new highs. "Here, the pace has become glacial."
Momentum was also a problem, Zimmerman added.
"As far as momentum goes, you wouldn't have bearish momentum without a bearish rising wedge," he said. "The two go hand in hand."
Zimmerman said that the bigger picture also showed a broadening top in the S&P 500.
"Now, this move up, if it makes a new high, it'll complete a massive peaking pattern, and I think there is a case for that," he said.
"We've been looking at 1,480 as critical support. That held. So there's a chance of one more leg up, maybe to 1,590, best case. Everything leads to a big brick wall overhead at 1,590."
Trader disclosure: On March 4, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long SSYS; Jon Najarian is long V; Jon Najarian is long MA; Jon Najarian is long DVA; Jon Najarian is long MTC; Jon Najarian is long RDN; Jon Najarian is long STX; Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long MJN; Joe Terranova is long AXP; Joe Terranova is long GPS; Joe Terranova is long KORS; Joe Terranova is long GS; Joe Terranova is long SWN; Simon Baker is funds long IWM; Simon Baker is funds long AAPL; Simon Baker is funds long AMAT ;Simon Baker is funds long BAC; Simon Baker is funds long FFIV; Simon Baker is funds long FXI; Simon Baker is funds long JNPR; Simon Baker is funds long QQQ; Simon Baker is funds long CSCO; Simon Baker is funds long GOOG; Simon Baker is funds long MS; Simon Baker is funds long MSFT; Anthony Scaramucci is long AAPL; Anthony Scaramucci is long C; Anthony Scaramucci is long GS; Anthony Scaramucci is long JPM; Anthony Scaramucci is long MSFT; Anthony Scaramucci is long GOOG; Steve Grasso is long AAPL; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long GOOG; Steve Grasso is long GDX; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long PXD; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long VLO; Steve Grasso is funds long HPQ; Steve Grasso is funds long ZNGA; Steve Grasso is funds long BRCM.
