Markets are at new highs. Everyone seemed stunned to discover that we have moved to another historic high on the S&P 500.
Why? We were never more than about 1 percent from an historic high for the past few weeks. The action has been so muted, and on such light volume, that everyone forgot. Forgot what? Forgot that we have hit historic highs on an intraday basis nine times — in the last month!
Here's what's going on:
Why the move up? Today's jobs report is the immediate catalyst, but again this did not happen overnight:
What's the downside? We're still looking at 2 percent growth with productivity challenges. That's an issue for sure, but the ceiling may have moved up just a bit.