S&P 500 SPDR ETF

With such a big onus on the broad market moving higher, it makes sense to look at the S&P 500 SPDR ETF ( SPY), an exchange-traded fund that acts as a very good proxy for the broad market. A quick glimpse at SPY's chart says just about everything you need to know about the big index right now: Things look stellar.

The S&P has been in a multi-stage rally since the market bottomed in 2009. More important, that rally has been orderly, with rally legs separated by intermediate corrections that allow overbought momentum to bleed off. With SPY smack dab in the middle of its latest rally leg, we're in a good position to see a new all-time high get set in stocks before the next correction comes around.

For investors looking to broadly "buy stocks," an ETF such as SPY is a good option. It provides a diversified basket of equities with a single trade. That said, I'd recommend waiting for a pullback to this rally leg's support level before jumping in. Then, keep a tight stop at the 50-day moving average; if SPY breaks below that level, another corrective leg is likely.

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