Worried about the recent rally in U.S. stocks? Currently the market is 3.3% above it's 50-day moving average. It is both extended and overbought.
Not to worry... this does not necessarily pose any risk of a major correction. We have found, and intuition tells us, that stock and market prices revert to the mean. What if we thought of it as the mean reverting to the price? In the case of a moving average this is entirely possible. The rally is tapering off, and a period of consolidation (sideways trading) is probably more realistic than a sharp downside correction (also known as the Summer Doldrums).