Markets continued to advance on the last trading week of the month and quarter, which ended on the Thursday of a shortened trading week. The S&P 500 again closed at new all-time highs, notching five consecutive months of gains. Fundstrat Head of Research Tom Lee sees more gas in the tank, with fund flows and cash on the sidelines suggesting that we have yet to approach a top in this latest rally.

Mark Newton, Head of Technical Strategy, agreed. In his technicals-based view, "We've seen the best start to the year in the past five years, and there’s really no evidence of any technical deterioration whatsoever,” he said during our weekly research huddle.

Lee has described the current rally as “mature,” but Newton suggested that “maturing” might be a more appropriate descriptor. “I see this rally as gradually maturing,” he said. “The waning of Technology over the last month has been encouraging, because it really has not caused any technical damage to the market. We’ve seen the move in Industrials, Financials, and Discretionary all give way to strength in commodity-based sectors. Energy has just broken out to its highest level in 10 years. I wrote more about this move, and about some of my favorite names in that sector, a few days ago,” he reminded u...

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