Making Money Alert – FREE
06/12/2013
For the past couple of weeks, the 2013 bull stampede has slowed considerably. Indeed, ever since the Fed introduced the term “tapering” into the trading milieu (a reference to the potential for reducing its current bond-buying scheme) the market has seen the return of sellers. We’ve also seen the return of volatility, and that’s caused a lot of investors to worry about what’s next for stocks. Given the recent pullback in equities, both here at home and in many segments pegged to international markets, I thought it would be helpful to take a look at the technical state of stocks. Doing so will give us a better sense of the risks here, as well as the potential opportunities for getting in on stocks at a discount. Let’s start with a look at the broad-based measure of the domestic market, the S&P 500 Index. Here we’ll use the SPDR S&P 500 (SPY), an exchange-traded fund, or ETF, pegged to the index. The chart above of SPY shows the recent pullback…