When will the bulls have their next day in the sun? Oppenheimer chief market technician Carter Worth consulted the charts and his findings might startle you!
Following is a summary of Carter Worth’s main points on Fast Money.
Worth is all but ready to declare the current 5-year bull run, dead! The sectors that have shown relative strength are starting to deteriorate, he said. First the financials fell, then new tech rolled over, but more tellingly, senior tech, such as IBM (IBM) and Cisco (CSCO), are finally falling. (Worth recommended getting out of Cisco.)
He concluded that, for the first time, events have led to a downward trend in the 150-day moving average for the S&P. Unless the market shows immediate signs of improving Worth believes the market is topping out.
Pete Najarian didn’t agree with Worth’s analysis. He felt that, although some stocks might be broken such as Citigroup (C) and Merrill (MER) , it’s only those names that are dragging down the broader market.
There’s money on the sidelines and that money will soon go back into stocks, he added.
Both Karen Finerman and Tim Seymour recommended blending technical analysis with fundamental analysis. Neither can advocate making investment decisions by the charts alone.
For more details about Carter Worth’s analysis please watch this video.