Since tapering was first talked about, the US dollar has strengthened and bond yields have climbed. Both of these events are what we would expect when tapering actually begins, so some markets have already priced in the reality of tapering. But it will be the magnitude of the tapering that will dictate how equity markets respond.
IG Market Strategist, Evan Lucas agrees the bond market has priced in tapering, but says the equity market is yet to. As a result, we will experience whippy equity markets until we have more clarity around tapering.