This article discussed the current stock market condition. It specifically answers the question of whether or not the market will experience a correction and pull back or if it will simply continue forward.

The stock market will not experience a dramatic correction.  There will be significant and numerous pull backs in the S&P 500 and in all stocks.  These will be caused by normal market forces including profit takers who do not wish to risk their already made profits.  I do believe that the market is currently flooded with buyers and stocks are over priced.  Value investors such as Benjamin Graham or Warren E. Buffet would probably not be finding any of “bargain stocks”.  Bargain stocks are stocks which list for less than their intrinsic value.  Although these conditions may not be present that does not mean the market is not bull or that you can not make money buying stocks.  The main proof that supports the theory of no correction is the last recessions.  In neither the 2000 recession nor the recession of the 1990’s was there any correction at all.  Stocks made a speedy and continues climb back and past their former levels. 

This is a cart of the S&P 500 immediately after the 2000 recession.  As you can clearly see there is no major correction in the market.  The S&P 500 made a direct climb back to previous levels.  The only bearish movements shown on the chart were caused by the fore mentioned profit takers.

There will be no market correction following the recession of 2007-2008 just as there was not for the last two.  There will be many small pull backs in stocks but many of these will be predictable.  These declines in stock movement will be caused by a few things.  These include negative news, bad earnings, world market occurrences and forex market changes.  The other significant places to watch for pull backs are at the classic Fibonacci levels as well as the 11,000 and 11,500 marks for the S&P 500.  If I am wrong and a market correction does take place it will certainly come after a combination of the negative earnings or news as well as Fibonacci or heavy past resistance levels.  Otherwise these points will simply provide opportunities to get in on the money making.

Read more in Investing
« A Realtors Perspective on The Housing Market Today
What is Next for The Stock Market »

As a swing trader the current markets are very difficult because earnings and news are moving the market more than is normal because everyone is wondering if a correction will occur.  As a long term investor however the markets are fantastic.  Although Graham and Buffet may not find extremely discounted stocks, stocks are still on sale.  The S&P 500 are only slightly over half way recovered from the last recession.  This leaves nearly 50% gains to still be had in combination with the long term bullish trend that has existed since the markets began.

For a detailed report on the Health Care Sector and why I think Obama’s plan will actually help people make some money check out this article.

Thank you to MSN Money for the excellent chart.

Remember that investing is very risky and this article is not investing advice.  One should never invest money that they cannot afford to lose and intense research should be done before investing.  This article is not responsible for actions which are taken after reading it.