Jeffrey Weiss Of Tejas Securities Group On Surfing The Market Wave

Jeffrey Weiss, Chief Technical Analyst and chartered market technician at Tejas Securities Group, appeared on CNBC Squawk Box on Tuesday morning to discuss the drop in the S&P 500 and his feelings on it's future based on past numbers. Weiss looks at the charts to get a technical read on the markets' mixed messages. He said that the S&P 500 is doing well, noting the major breakout earlier in the year, saying that it's done just fine since then. That is, until two Wednesdays ago, when the S&P had what he called "a negative reversal pattern in the S&P." Weiss said that right now, we're still above the 2000-2007 highs that the S&P had, and that the charts support weekly closing points of 1585-1595 fairly well. Weiss believes that these drops will only be temporary. "As a technician, I'm not so interested in the minute to minute and the hour to hour movements. I wanna see trend lines that've stood the test of time. If we get above that trend line and hold, that's when I think you get your next up point, but for now, I still think we have this upper 14, upper 16 hundreds S&P top on a daily closing basis," said Weiss. Weiss said that the bottom line is bullish. "Who would've thought the S&P would've done what it's doing: Going from under a thousand to almost 1,700, and what could've possibly justified what the S&P has done since then?" Weiss asked rhetorically. He said that it's justified by trying to look at the trend and ride it for all its worth. "While stocks ultimately consult based on fundamentals, the question is: Once they come out, where's the stock and what percentage of that gain, or on the downside loss, has occurred?" said Weiss. Weiss closed by saying that riding the market is like being a surfer catching a wave.