This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Rockwell's Cardillo Cautions S&P 500 Retreat to 1,775

Stocks in this article: ^GSPC SPX SPY

NEW YORK (TheStreet) -- The S&P 500 has slid 0.92% in the last four sessions after finishing at a record close of 1,807.23 on Nov. 27, signaling that the benchmark index may be at the outset of a pullback that market watchers have said is long overdue in the best year so far since 1997.

^SPX Chart

Peter Cardillo, chief market economist at New York-based Rockwell Global Capital says equity markets as well as bonds are anticipating a Fed reduction in its stimulus program considering the reasonably positive economic data this week. The irony of strong economic data pushing stocks lower is the product of Fed policies that have helped fuel a 25% run in the S&P 500 in 2013. 

The S&P 500 could retrace to 1,775, Cardillo says, if the November government jobs report exceeds economist expectations. the Rockwell Capital economist is forecasting a job addition of 225,000, which adds to the prospects of the economy beginning to accelerate and takes the market back to December tapering chatter.

"So I think the market is adjusting to that and so between the tapering factor and and the fact the market has done extremely well without pausing for a while suggests that we're going through this little technical pullback," Cardillo said over a phone interview.

After that, the market will probably trade sideways for the balance of the year and begin to move higher in the first quarter, says Cardillo. He sees the S&P 500 heading for a nice rally in the first quarter in light of a stronger economic picture.

Cincinnati-based Schaeffer's Investment Research's senior equity analyst Joe Bell agrees that the heavy dose of jobs data at the end of the week will steal most of the spotlight. "The momentum has been strong, but many of the indices continue to struggle with round number areas they first approached last week and short-term consolidation before the next up leg makes sense here," he said in an email.

--Written by Andrea Tse in New York.

>Contact by Email.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs