Stocks continue to consolidate just under their prior high, which is offering formidable resistance. Although many long-standing uncertainties have significantly subsided, others have arisen, including turmoil in a new global hot spot (Ukraine) and the disruptions to the economy caused by the unusually long and brutal winter experienced by most of the U.S.

Last week, stocks continued their rebound from the edge of the abyss. Investors responded positively to a dovish combination of comments from Speaker of the House John Boehner and new Federal Reserve Chairwoman Janet Yellen. Mr. Boehner said he would not pursue another acrimonious battle over the debt ceiling. And Ms.

Stocks provided a volatile and sweat-inducing ride last week in what many investors and traders thought might be the big selloff that so many have been predicting. Although the market tends to follow a path that fools the greatest number of people, sometimes it behaves in a self-fulfilling prophesy.

Stocks continued last week to seek some firmer footing, as prices found some support and volatility hit some resistance, and a flight to safety of global capital benefited long-term Treasury bonds -- the very assets that are supposed to be selling off in a secular “Great Rotation” into equities.

There is no sugar-coating what happened to stocks on Friday. All around the world, stocks really took it on the chin as the usual support mechanisms that bulls have enjoyed failed to materialize. The S&P 500 sliced through firm support at 1800 on high volume like it wasn’t even there. But market participants had become convinced that a long-overdue correction was imminent, so they quite simply were looking for a reason to sell.

Stocks continue to trade in a sideways technical consolidation just below their highs. With the start of earnings season underway, investors appear to be looking for a catalyst for some renewed buying that can launch a bullish breakout.

The first full week of the New Year was uneventful. There seems to be some trepidation among U.S. equity investors after such a strong finish to 2013. On Friday, the jobs report was disappointing, but investors quickly shook it off as nothing more than an anomaly given the prior trends and closed the week on a high note. Among the business sectors, the big winner last week was Healthcare, but Technology also showed signs of life.

With plenty of wind in their sails, bulls coasted comfortably into year-end to close out 2013 with a stellar performance, as Santa made his widely-expected appearance on Wall Street. In fact, stocks saw one of their best years ever and the strongest since 1997, with the S&P 500 boasting a total return around 30% while closing the year right at its all-time high.

Well, Fed Chairman Bernanke has proved me wrong by dipping his toe into the dreaded tapering of QE3. In retrospect, I suppose he preferred to take this first step on his own rather than put the onus (and any associated fallout) on the back on his successor.

The stock market’s technical consolidation continues, and in fact anyone who missed last week’s entry point for the widely-anticipated year-end rally is getting another shot at it. The S&P 500 and Dow Jones Industrials both lost round-number support again this week at 1800 and 16,000, after briefly recovering them from last week’s pullback.