Cantor Fitzgerald: Market Participation Is Flagging, Setting Up For Top (Peter Cecchini)

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Cantor Fitzgerald's Peter Cecchini told CNBC on November 21, 2014 (last Friday) that he thinks the market is setting up for a top because: 1) market "participation is flagging" (market breadth, or the advance/decline line in this case, is diverging with price); 2) the "very steep skew is associated with market tops" (volatility); 3) we're at very important resistance levels on charts (technicals); and 4) he's not bullish on earnings next year and believes profit margins, which are near historical highs (10%), will revert to the mean.

I embedded the CNBC video after the jump and linked to related posts.

Recent related posts:
*S&P 500 vs. Forward 12-Month EPS Estimate (FactSet Charts)

*The S&P vs. Previous Extremes

*Valuation Warning: The S&P 500 Is In A Bubble

*USAA's Wasif Latif: European Stocks More Attractive Than U.S. Stocks On Relative Value Basis, Need Policy Catalyst