Hi traders, the S&P 500 lost 5.1% last week, down nearly 10% from its peak. Will the declines continue? There is no fundamental justification for this: the interest rate is not too high, the new tax law will continue to provide a tailwind for companies, and there is no sign of a slowdown. There is no similarity between now and what happened in 2008. This is a technical pullback that most likely lead to new highs, but it is not yet time to announce a bottom. At this point we should start looking for strong stocks that may lead to the next gains.

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