Last week’s broadly based stock market rally was not enough to convince the stock market skeptics that stocks could go even higher this year. It is also likely that many individual investors are still on the sidelines as they worry about the health of the economy and the prospect for higher rates. On a short-term basis, the US market appears ready for a short-term pullback when trading resumes on Tuesday. Technically, it looks like a correction over the near term will set the stage for a decisive move above last week’s highs. Given the 24-hour news cycle, stock market investors always have something to worry about. But as I discussed in Friday’s Will Stocks Melt Up? there are also reasons why stocks could go much higher before the summer. The broadly based STOXX Europe 600 hit a seven year high on Friday but is a bit lower early Monday ahead of the negotiations by the EuroZone finance ministers over Greece’s debt deal.
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