Friday the markets sold off sharply with the Dow closing off 1.4% at 11823, the S&P 500 down 1.8% at 1276 and the Nasdaq which got hit the hardest closing down 2.5% at 2686. This was after a week where the Dow traded above 12000 a few times but could not hold and the S&P 500 also flirted with the 1300 level before retreating.
Personally I have been anticipating a pullback from a technical perspective, but seemingly it took the Egyptian crisis to be the catalyst for a long overdue correction. Investors and traders can get a little complacent when markets continue to lift week after week such as the current bull market we are in. In fact some participants including the media just assume and want equities to continue to march north uninterrupted. In my humble opinion it is healthy for a bull market to correct and in some instances a 5-10% correction is necessary for a sustainable bull market. If you have a long term investment strategy it is best not to be afraid of corrections but anticipate them, for you should then be able to buy your favorite equities or asset classes at a discount.
Have a healthy and prosperous week.