After almost 7 months of seemingly unstoppable bullish action in the equity markets, overnight the Nikkei suffered its biggest pull back in over 2 years. The question is how far stocks will fall before they bounce. I think we have yet to see the highs for this year, despite what you see on t.v and read in the newspaper. The Federal Reserve spent over 4 years re-inflating assets, I don't think they will let it all go for naught in one trading session. We could be witnessing the much needed pull back. A pull back that will get the shorts back to doing what they've been losing money at since 2009, shorting stocks. The pull back will get the bears out of hibernation, calling for massive declines in equity prices, wondering how the stock market ever got to such lofty levels.
One theme that has worked and remains a bona fide investment strategy is BTFD. Until that breaks, don't fight it. The Great Taper is just another BTFD opportunity.