CNBC Pro

The market's rally into spring could make way to some choppiness ahead if past patterns hold

Traders on the floor of the New York Stock Exchange.
Source: NYSE

About six months after a presidential election and more than a year past a bruising market downturn, stocks remains buoyant near record highs.

Market leadership rotates as if choreographed, helping to keep index pullbacks shallow despite a long stretch of optimistic sentiment and economic enthusiasm. Conditions seem ripe for some sort of correction, but the rally grinds on. While the tape wobbled around election time, Wall Street has found plenty to like in the policy mix being tossed together in Washington.

Treasury yields have risen off historic lows and investors are a bit wary of what level might restrain the economy and pinch share prices, but so far not much damage done.

The yield curve has steepened, a sign of economic optimism and forbearing Fed. Corporate earnings are levitating. Risk spreads on junk bonds have shuttled toward record lows from precarious extremes during the last equity meltdown. 

More In Santoli on Stocks

Apple stock’s recent weakness could stem from safety-seeking investors who are now fleeing
CNBC ProApple stock’s recent weakness could stem from safety-seeking investors who are now fleeing
This indicator is offering a hopeful signal for global markets, despite turmoil in China
CNBC ProThis indicator is offering a hopeful signal for global markets, despite turmoil in China
Best Buy's jump on ho-hum earnings shows how unloved some retail stocks have become
CNBC ProBest Buy's jump on ho-hum earnings shows how unloved some retail stocks have become