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Carter Worth: Charts Suggest Buying Current Weakness

Ask any market pro on the Street and they can rattle off a string of reasons why the path of least resistance in the stock market is lower.

Go on, say it along with is: there are Europe’s economic woes, China tightening, the new regulations and requirements for banks, sharply higher prices at the pump and a surge in input costs threatening profit margins.

It enough to make you want to dig a hole in the sand and bury your head.

Well, the way we see it, we’ve got 2 choices - find a shovel and get to work on that hole -- or check the charts to see what the technicals have to say about the market moves.

The hole is tempting but we’re going with the charts and we don’t know anybody better to ask than Oppenheimer’s Carter Worth.

And guess what? He tells us chart patterns suggest the most likely move in the S&P will be higher.

You read that right, higher.

He looks at trend lines and the 150-day moving average and all those things chart watchers – watch – and says it looks as if the 1220 level – which was the level at which the market broke higher in April and November should provided strong support.

He counsels “Buying and taking advantage of the current weakness.”

However, that’s not to say the upside is limitless. He thinks the S&P trades up to 1310, and when it gets there he says “I’d trim.” And if the S&P overshoots to the upside at 1340 he says “take back all longs.”

* Watch the video for Carter Worth's full analysis.



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Trader disclosure: On June 13, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Grasso Owns (AKS); Grasso Owns (AMD); Grasso Owns (ASTM); Grasso Owns (BA); Grasso Owns (BAC); Grasso Owns (C); Grasso Owns (D); Grasso Owns (HOV); Grasso Owns (JPM); Grasso Owns (LIT); Grasso Owns (LPX); Grasso Owns (MHY); Grasso Owns (NDAQ); Grasso Owns (PFE); Grasso Owns (PRST); Stutland Owns (BAC); Stutland Owns (GS) Bonds; Stutland Owns (GM); Stutland Owns (GOOG) Bull Option Spread; Stutland Owns (MSFT) Bonds; Stutland Owns (WMT), Is Short (WMT) Calls; Stutland Owns Silver Bear Option Spread; Stutland Owns (GLD); Finerman Owns (MSFT); Finerman Owns (BAC); Finerman Owns (AAPL)

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