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Expect an April Correction: Technician

Monday, 25 Mar 2013 | 5:47 PM ET
Expect an April Correction: Technician
Monday, 25 Mar 2013 | 5:04 PM ET
The run-up in stocks has been driven by sentiment, not economic fundamentals or earnings, Drexel Hamilton technician Barry Sine says.

The recent run-up in stocks could be reversing soon, Drexel Hamilton Technician Barry Sine said Monday.

"I don't think that this market has been driven by economic fundamentals or earnings. I think it's been driven more by sentiment," he said.

"Look at the earnings we saw last week: Caterpillar, Cintas, Oracle, FedEx. When we see earnings, the stocks decline."

On CNBC's "Fast Money," he said that it was time to expect a selloff in April, maybe earlier.

The S&P 500, which rose to within 1 percent from an all-time high before pulling back, closed down 5 points for the day at 1,551.69.

Sine said that "somewhere below the 1,400 level" in the S&P would be a "reasonable target" for the summer.

"Come back in the fall and buy equities then," he added.

Trader disclosure: On March 25, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Simon Baker is long AAPL; Simon Baker is long JPM; Simon Baker is long GLD; Simon Baker is long YHOO; Simon Baker is long EBAY; Guy Adami owns C; Guy Adami owns GS; Guy Adami owns INTC; Guy Adami owns MSFT; Guy Adami owns AGU; Guy Adami owns NUE; Guy Adami owns BTU; Guy's note: "My wife, Linda Snow, works at Merck"; Brian Kelly is long Treasuries; Brian Kelly is long GOLD; Brian Kelly is long Silver; Brian Kelly is short S P; Brian Kelly is short .DAX; Brian Kelly is short copper; Pete Najarian is long stock AAPL; Pete Najarian is long stock BBRY; Pete Najarian is long stock SBUX; Pete Najarian is long stock FB; Pete Najarian is long stock MSFT; Pete Najarian is long calls NOK; Pete Najarian is long stock GE;

For David Strasser
Janney Montgomery Scott LLC currently acts as a market-maker in the securities of Best Buy Corporation; Janney Montgomery Scott LLC intends to seek or expects to receive compensation for investment banking services from Best Buy Corporation in the next three months; The research analyst is compensated based on, in part, Janney Montgomery Scott's profitability, which includes its investment banking revenues.

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