The market’s rally remains intact, though it has shown a few warts—the small-cap indexes are again lagging and the broad market is showing a few signs of wear and tear. These are legitimate yellow flags, but we’re not acting on them because the most important evidence—the trends of the market and most leading stocks—is still up. Thus, we remain bullish, and while we’re keeping a close eye on the action, we still believe the odds favor higher prices in the weeks and months ahead.
