We came very close to new highs on Friday, closing just shy of that 2,130 level. Regardless: It was a remarkable rally.
What happened? The bulls are arguing that the strong June jobs report creates a Goldilocks scenario: We're back to strong job gains, but the Fed is still likely to hold on for some months at the very least.
Bears insist this rally had nothing to do with fundamentals or even with the idea that there is some dramatic improvement in the economy. They say the rally is due to unusually heavy demand for both U.S. stocks and bonds, partly due to foreign demand, partly because central banks are buying up bonds, and partly because investors are forced into U.S. stocks because of a lack of alternatives, and because Europe and China stocks are problematic.
You know what's amazing about this debate? They're both right.
Regardless: Either interpretation means stocks rally. And it was a broad-based rally: 9 stocks were up for every 1 declining.
New highs are expanding — with Industrials like General Electric and UPS suddenly on the new high list.
Where do we go from here? We go to earnings, which start on Monday with Alcoa. And we find out how much this whole Brexit thing might impact the second half of the year. No — it hasn't gone away.