Short-term optimism has reached an extreme that has resulted in a lower weekly close within the next 6 weeks every time over the past 5 years.
The fundamental narrative for the current rally is that the Trump administration's tax plan will boost earnings by an estimated 6%. If investors expect the tax plan to also cause economic growth to accelerate, then they are very likely to be disappointed.
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SPX, COMPQ, RUT and NYSE made new all-time highs (ATH) again this week. SPX has been up 5 of the last 6 weeks. The dominant trend remains higher. Enlarge any image by clicking on it.