Market Call

Here is Joe Feshbach's latest take on the S&P 500: "The index is getting closer to its two previous highs of 4100,and thus a possible break above that level." That's been his target at the beginning of this rally and he sees "no reason to alter it." He adds, "The sentiment numbers just do not support a big breakout above these levels and while a break above 4100 could lead to another 2% or so, I believe the right strategy now is to start pairing back positions bought earlier in preparation for the market's next setback."

We asked Joe about the downside. He said, "Hard for me to tell now. I just want to start paring back, as this breakout is going to fool most people."