Last week’s market action brought another new high for the S&P 500. As we all know, new index highs that are accompanied by a sufficient number of stocks making new highs are not a reason for concern - they are evidence of strength and confirmation of bull market behavior (previous highs are resistance and bull markets break through resistance).
To put it another way, new highs fuel optimism and optimism fuels strength. Rinse and repeat. It takes bulls to have a bull market.
Beyond new all-time highs and the sentiment of investors, we are seeing ample other evidence that the bull market remains intact. While we have not seen a breadth thrust (more on this later), we have seen a return of the quiet strength that is a hallmark of bull markets. The strongest markets are not exciting, but they quietly and persistently grind higher. The absence of big moves in the indexes and more stocks making new highs than new lows fits this pattern.
Zooming out, evidence of broad strength continues to accumulate.
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