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Warning: That plunge in stocks is just the beginning

NEW YORK (MarketWatch) — If the ups and downs of the past week have taught investors anything, it’s that there are cracks in this 5 1/2-year-old bull market.

The lesson for investors? Tread carefully.

Stocks took a tumble as a raft of economic data sparked fears the Federal Reserve could speed up its timetable for raising interest rates. The S&P 500 index SPX -0.29% took its biggest weekly hit in more than two years, losing 2.7%. The Dow Jones Industrial Average DJIA -0.42% , meanwhile, sliced through its 50-day moving average and erased the gains that had tenuously built up this year.

“It reminded people that the stock market can actually go down. It seems like a lot of people had forgotten,” said Mike O’Rourke, chief market strategist at JonesTrading.


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I was just about to post this.

Tomorrow should be an interesting day.

Meanwhile, the dollar is starting to rally.

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