It seems that all the market wants to do is climb higher? How much longer can it keep that up?
Wednesday’s market action might hold the secret. The S&P 500 marched right into 870 – a previous point of technical resistance – and never looked back.
By the close the S&P had marked its highest finish since January. The gains gave the bulls new confidence that the worst is over and real strength has returned to the overall market.
Who can blame them - the fundamentals look to be on their side, too. The Federal Reserve says the economic outlook has improved modestly since its last meeting in March.
Another positive development comes in the form of recent GDP data, which looks bearish at first glance – until you dig down. Although the headline number shows a sharp contraction, GDP data also shows a rise in consumer spending and a decline in inventories - two signals that are bullish.
"What everybody is hanging their hat on is this inventory draw, and the expectation that inventories are that far down that the next thing that's going to happen is that you're going to have to build inventories and we're going to have start manufacturing," explains Paul Nolte of Hinsdale Associates.
Are we on the brink of the next bull market? And if so, how should you trade? We asked the Fast Money gang as well as strategic investor Dennis Gartmen and Oppenheimer chief market technician Cater Worth.
