With S&P 500 at record high, stocks could be at “biggest selling opportunity in a decade”

Stock rallied last week, with the S&P 500 jumping 2.2 percent and hitting a record high of 2,954.18 on Thursday in the process.

However, some analysts think that risks to the stock market rally abound.

“This is probably one of the riskiest points you’re ever going to see in the stock market,” said Michael O’Rourke, chief market strategist at JonesTrading. “The price level here is not supported by fundamentals. It’s supported by sentiment and hype and hopefulness about monetary policy.”

Sven Henrich, founder and the lead market strategist of NorthmanTrader.com, said that with high debt levels and limited ammunition to deal with a new recession, “everything points to a more fragile system”.

“Therefore, we may be looking at the biggest selling opportunity in a decade,” he concluded.

Leon Cooperman, Omega Advisors chairman and CEO, warned that a really big move higher in stocks could signal “the close-out move”, meaning the end of the recent bullish run.

Cooperman said that if the S&P 500 hits 3,100, it would be “knocking on the door of euphoria” and that he would “be reducing my exposure” in stocks.