Major indexes fell in trading on Thursday. The Dow Jones Industrial Average dropped nearly 0.6%, while the S&P 500 dipped nearly 0.2%, as did the tech-heavy Nasdaq composite. But small caps sharply underperformed as the Russell 2000 index lost 1.3%.
What Investors Should Do Now
. The market rally had a relatively quiet day at or around record highs. The S&P 500 is 3.6% above the 50-day moving average, and the Nasdaq is 5.5% above its 50-day line.
. When to sell?
When stocks are more than 20%-30% above their 10-day moving averages, 100% over their 50-day lines or 200% above the 200-day, it may be prudent to bank some profits.
. Make sure you monitor your positions that are acting out of character and sell any stocks that trigger sell rules.