Investors knew the taper was coming and yet stocks were
hitting new highs up to 1709 in early August. Since then stocks
have slowly dripped lower.
Perhaps it is just a classic consolidation. Perhaps it is
To understand what is likely to happen next we need to discuss
the nature of this recent decline. Which of the following do you
think best describes why stocks have been on the decline.
1) Classic 3-5% consolidation before getting ready to make new
2) Stock correction of 5%+ before making new highs.
3) QE taper = higher rates = stocks less attractive = major
gains over and stocks go sideways to down in the future.
Which do you think best describes where we are at? And then be
sure to share your ratioinale as to why in the comments section
SPDR-DJ IND AVG (DIA): ETF Research Reports
ISHARS-R 2000 (IWM): ETF Research Reports
NASDAQ-100 SHRS (QQQ): ETF Research Reports
SPDR-SP 500 TR (SPY): ETF Research Reports
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