The S&P 500 was approaching the critical 2,100 level when Carl Icahn told CNBC last week that he is “extremely cautious” about stocks.

“I do believe in general that there will be a day of reckoning unless we get fiscal stimulus,” Icahn said on “Power Lunch.”

Since that interview, the S&P 500 has declined 23 points, and it appears as though the 2,100 level that has stymied the bull market repeatedly in the past year may once again prove impenetrable.

The S&P 500 first approached the 2,100 level in late 2014. Its most recent run at breaking out significantly higher comes after three previous attempts to reach 2,150 came up short.

The December 2014 surge to 2,093 was quickly sold off down to 1,980. By March of 2015, the S&P was back knocking on the door of 2,100 once gain and proceeded to trade mostly between 2,050 and 2,134 for nearly six months prior to the August selloff down to 1,867. Finally, November’s rally took the S&P as high as 2,116 before the early 2016 drop to 1,810.

“We know…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!