Bearish scenario in the S&P 500 is ‘on the table’
CNBC’s Jim Cramer has advised that investors take precautions as the S&P 500 inches closer to record trading levels.
The “Mad Money” host on Monday broke down one trusted technical analyst’s bearish prognosis of the market and, though he doesn’t agree with the conclusion, he warned that the scenario is “on the table in a lot of people’s heads.” The widely quoted large-cap index closed the session above 3,006, nearly 20 points off its all-time closing high from July.
“The charts, as interpreted by Carley Garner, suggest that the averages could keep climbing for the next few weeks, but after that she thinks we’re in real trouble and she recommends using any of the strength we’re about to get to ring the register,” he said. Garner is co-founder of DeCarley Trading.
“It never hurts to be a little cautious as we keep climbing,” he added. “I think there’s more to the bull market than Garner gives it credit for. Still, we need her perspective — she’s been right on a lot of things — because now if things do start rolling over, you’ll understand what the technicals say about the possible downside in front of us.”
A pullback in the S&P 500 is in store, based on Garner’s study of the S&P 500 December e-Mini futures weekly chart. E-mini futures are electronic contracts stipulating an asset be traded at a predetermined date and price.
The “Mad Money” host on Monday broke down one trusted technical analyst’s bearish prognosis of the market and, though he doesn’t agree with the conclusion, he warned that the scenario is “on the table in a lot of people’s heads.” The widely quoted large-cap index closed the session above 3,006, nearly 20 points off its all-time closing high from July.
“The charts, as interpreted by Carley Garner, suggest that the averages could keep climbing for the next few weeks, but after that she thinks we’re in real trouble and she recommends using any of the strength we’re about to get to ring the register,” he said. Garner is co-founder of DeCarley Trading.
“It never hurts to be a little cautious as we keep climbing,” he added. “I think there’s more to the bull market than Garner gives it credit for. Still, we need her perspective — she’s been right on a lot of things — because now if things do start rolling over, you’ll understand what the technicals say about the possible downside in front of us.”
A pullback in the S&P 500 is in store, based on Garner’s study of the S&P 500 December e-Mini futures weekly chart. E-mini futures are electronic contracts stipulating an asset be traded at a predetermined date and price.