Week Ahead: market stalls but no sign of panic (Reuters)

NEW YORK (Reuters) - more bad days may be in store for stocks in the coming weeks, but investors are not on the panic button. Not yet.

With the low employment growth and the end of the program of the Federal Reserve looking gazes investors in the face, the fall of 5% in the S & P 500 (.)(SPX) since last month is high at halfway to the definition of the market of a correction - a 10 per cent of the fall of a recent Summit.

The index in the vast market Friday recorded its worst week since mid-August and his fifth consecutive week of declines.

But fund managers posted in custody, not distress. See the recent data confirming a soft patch, or slowdown, after the Government said the economy has created a lean jobs 54 000 in May. Others say that the economy may be headed toward a recession.

The sharp fall in bond also gives points to a similar concern, but a slowdown all-out in actions is not in the cards again investors say. For the year stocks are still positive, with the index Dow Jones 5 per cent, while the & S P 500 and Nasdaq are each about 3%.

"The markets will be jerky." They'll be looking for validation that this is just a soft patch that we are going through, not the economy turning, "said Mike Ryan, head based in New York for research in management of resources for the Americas at UBS Financial Services Inc.,. which oversees approximately $ 641 billion

Some concede that the stock market could see further declines in Europe's sovereign debt problems of a spillover of violence at the Yemen in Saudi Arabia, which could raise oil prices, hurting the consumer.

The lack of economic data moving the market or the next week of corporate profits could also make nervous investors hit the button more often to sell. But the mantra of market of "buy the dip," who has worked since the beginning of the two Fed round of its quantitative easing in August could prevail.

"Is another 5% (decline) possible here?" I do not see why it would be, given the risk of contagion in Europe, "said Natalie Trunow, investment officer head of actions to Calvert Investment Management in Bethesda, Maryland, which manages about $ 14.8 billion.

"The market is constantly reconcile the fact that it is a slow recovery." We have had a painful accident and a crisis and we are painfully, gradually emerge. That withdrawal and potentially more active here in the course of the next few months - I find these entry points attractive for long-term investors. ?

Data which showed net inflows in the global equity fund may confirm the investors are not ready to throw the sponge.

Shares followed by EPFR Global Fund given influx of $ 1.7 billion the week ending last Wednesday, divided evenly between developed and emerging markets. The data come after three weeks of spacewalks totaling $ 18 billion. Bond funds took in $ 3.5 billion in net entries a week sixteenth right inputs.

From a technical point of view the US stock market showed some resilience, despite dismal employment data.

The S & P 500 Friday managed to close just above 1 300, keeping the low April just below 1 295 as a short-term support.

Of course, not all investors are just a soft patch in economic data. Report of payroll Friday confirmed the loss of momentum in the economy, which was already noted by other consumption of manufacturing data.

And the end of of2 the Fed, which helped lift the S & P 500 30 percent in eight months at the end of April, is stealing the market an indispensable source of liquidity.

"We will see a bond risk, products and global trades and shares American and money is going in the short term on the bond market, said Charles Biderman, the CEO of TrimTabs Investment Research in Sausalito, California.".

"I just cannot see where the money comes from to take stocks higher, if the Government will not be providing it.".

(Reported by Rodrigo Campos; additional reports by Caroline Valetkevitch, Lucia Mutikani and Ryan Vlastelica;) (Editing by Kenneth Barry)

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