I know a lot of people believe that the current market rally is unsustainable, and at its current trajectory it probably is. But that doesn’t mean it can’t flatten out some through time and put together a more 45-degree-ish kind of rally that can sustain itself into the elections. bulls with room to run on the stock market

Remember, the market has essentially gone nowhere for the past past two years. The market simply traded sideways and rejected any upward movement on 14 separate occasions. To me, it makes sense that the market is wanting to finally rally hard once that resistance was broken. 

The SharePlanner Reversal Indicator is showing the same thing as well. There is still room to run, and could mean that a meaningful pullback might not happen for another 2-3 weeks. 

And earnings season? Earnings have been pretty solid so far. You have a bunch of big names on the tech side that will be reporting next week, but overall the market is responding well to earnings. 

Here’s the SharePlanner Reversal Indicator:

shareplanner reversal indicator weekly 7-20-16

 

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