Stocks have had a rough go of it lately. The S&P 500 Index is off by about 7% from its most recent high reached on 4/29 due to a host of growing concerns, including an economic slowdown and the ongoing European debt problem.
The decline has carried the market down to its 200-day moving average, which it hasn’t really even been close to since last summer (shown on chart below). In addition, the S&P is also just above its 2011 low of 1,250 reached in mid-March. With stocks close to two important areas of support, and with signs of being oversold in the near-term, we believe that at the very least some sort of bounce should materialize soon.