‘Conflict’ in 178-Day Bull Market: Strategist

Tuesday, 14 May 2013 | 5:54 PM ET
'Market in Conflict With Itself': Strategist
Tuesday, 14 May 2013 | 5:05 PM ET
Stocks are due for a consolidation in the next few weeks, Jeff Kleintop of LPL Financial says.

Stocks – which closed at fresh all-time highs – might have gotten ahead of themselves and are due for a consolidation in the next few weeks, LPL Financial Chief Market Strategist Jeff Kleintop said Tuesday.

"I'd also note that we're 11 percent above the 200-day moving average," he said. "That's where we've been ahead of the spring slides in each of the last few years."

The 50-month-old bull market – or 178 up days – could be setting up for a top, he added.

The S&P 500 gained 1 percent to close at 1,650.34, while the Dow Jones Industrial Averageclimbed 0.8 percent, ending up at 15,215.25.

(Read More: S&P, Dow Close at Record Highs as Financials Surge; Apple Drops 2.5 Percent)

On CNBC's "Fast Money," Kleintop said that the stock market was "in conflict with itself."

"I'd say this market's due for a little bit of a consolidation in the coming weeks," he added.

Consolidation could mean stocks retreat to their 200-day moving averages, Kleintop said.

"Usually, when we see these types of runs, 178 days or more, none of them have ended with a bear market," he said. "They've all ended – whether you looked at the '80s, the '90s, the 2000s – with a 5 to 10 percent pullback."

In such an investing environment, Kleintop said, cyclicals were the ones you would want to consider.

"And some cyclicals have seen a 5 to 10 percent pullback here, like home builders and tech," he added. "Those are the areas you want to be buying."

Trader disclosure: On May 14, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is long CVS; Karen Finerman is short SPY; Karen Finerman is short MDY; Brian Kelly is short GLD; Brian Kelly is long TREASURIES; Brian Kelly is long DOLLAR; Brian Kelly is long COPPER; Brian Kelly is short GOLD; Brian Kelly is short SILVER; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU.

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