[video] Quick Take: Stocks Show No Sign of Selloff After Fed Taper
NEW YORK (TheStreet) -- The S&P 500 is nearly flat on Thursday following the record close on Wednesday when the Federal Reserve announced that it will begin tapering its asset purchases in January.
TheStreet's Debra Borchardt spoke to Mark Newton, chief market technician at Greywolf Securities, about where stocks are headed now.
Newton says there is no sign of a correction coming, at least for now. He added that equities never broke below key levels that would indicate a large correction is on the way.
He noted that in terms of sector rotation, industrials and financials are suddenly outperforming the broader market.
However, that doesn't mean there aren't concerns. Newton said there are fewer stocks making new highs, and rising interest rates continue to hinder utility stocks and real estate investment trusts.
Despite the concerns, stocks seem likely to rally into the spring before selling off a bit, he said. That will likely lead to new highs.
-- Written by Bret Kenwell in Petoskey, Mich.