When China's e-commerce juggernaut Alibaba.com went public on Sept. 19, the S&P 500 briefly touched its all-time high of 2,019.26. But since then, the broad market index has sold off and is now below 2,000.
Is this a signal that the American stocks have reached their peak?
"There is absolutely nothing to it," said Katie Stockton, chief technical analyst at BTIG. "It's a coincidence."
Stockton believes that were sentiment overly bullish at the S&P 500's highs, it would be more believable to say the top has been reached. "But if you look at past major IPOs in history, they are more often than not buying opportunities in the S&P 500," she said, citing Visa's IPO in 2008, General Motors' IPO in 2010, and Facebook's IPO in 2012 as all buying opportunities.
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The recent pullback in stocks after Alibaba's $25 billion IPO was merely a coincidence, said Stockton. "The pullback has been generated, really, by this fear in the marketplace, which to me is unfounded," she said. "If you look at the breadth and you look at short-term oversold conditions, they are already widespread now. I think we're actually upon a buying opportunity."
Gina Sanchez, founder of Chantico Global, agrees with Stockton that Alibaba's IPO and the market's recent highs were coincidence. "There is so much cash on the sidelines that I don't think that's an issue at all," she explained. "I think a lot of this is spurious at best."
However, Sanchez, a CNBC contributor, believes the market is running on borrowed time–borrowed from the cheap cost of money courtesy of the Federal Reserve Bank.
"As long as interest rates remain low," said Sanchez, "it is an enabler [helping] the markets rise at a time when earnings really haven't seen a strong return to demand. The fundamentals have been poor for some time but the momentum has been high."
"The Fed is going to just do everything they can to keep this party going," Sanchez added.
To see the full discussion on the S&P 500, with Sanchez on the fundamentals and Stockton on the technicals, watch the above video.