The Week Ahead: When Will the Selling End?

After several weeks of declining stock prices, major averages are now close to major support. This relentless selling should be followed by some significant buying, but MoneyShow’s Tom Aspray recommends that you stick with high-quality stocks that are performing better than the overall market.

It has been a punishing last six weeks or so in the stock market. The selling was pretty relentless all week, and early rally attempts fizzled quickly. I have been noting the deterioration in the technical picture since late March, when I warned: “The risk of a deeper correction remains high.”

Stocks continued to act pretty well during the month of April, but as the month came to a close, the enthusiasm over the earnings of Apple (AAPL) made me even more nervous about the market’s prospects. Adding to my concern were the upcoming elections in Europe, which had me wondering “Will Europe Spoil Apple’s Party?”

Now that the markets have answered the question, what can we expect in the coming months and what should investors be doing?