Selling hits The Street--1/27/2014
Over the last few trading sessions, a wave of selling has hit Wall Street. I can't say this comes as a huge surprise, as the rally last year was so big that a pause or a pullback seems only natural. Remember, markets do not move in straight lines up or down.
Studying the chart patterns of our recent Bull Market run seems to suggest that this pullback could pull the S&P 500 down to the 1,700 level. It may prove to be wise to have some cash at the ready should the market, indeed, be pulled down that far. For the record, that would equate to a pullback of a little over 8% from the S&P's high of around 1,850.