“Call it bad timing or just back to reality, but the Standard & Poor’s 500 all-time high has become a significant barrier to stock market gains.
For the fifth time in the past two weeks the broad-based index came within 5 points of its record, only to be beaten back either by technical resistance or, as was the case Monday, more disturbing global headlines.
“There’s resistance to climb over a high that hasn’t been breached since ’07. It takes a tremendous push,” said Mitchell Goldberg, president at ClientFirst Strategy.
“There’s an awful lot of people out there who are just breaking even now, who have become more risk-adverse and have had enough of risk-taking in the stock market,” he added. “The news cycle doesn’t help.”
Indeed, it was the latest out of Europe that pulled the stock market down Monday, with an agreement to bail out Cyprus banks rattling investors concerned about the deal coming apart and its contagion risk. Markets were also spooked by comments from Dutch finance minister Jeroen Dijsselbloem saying that the Cyprus bailout dealmight be a template for other bank bailouts in Europe…..”
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