You have to admire the Standard & Poor’s 500 index’s ability to scale the proverbial “Wall of Worry” in the face of major trade, economic and earnings worries throughout Q2 heading into Q3. I’ve been around for a few bull and bear markets, and if there were ever a market climbing that time-honored cliché, it’s this one.

That said, in the short-term a market pullback would not be surprising given the recent surge has pushed daily trading indicators back into overbought levels. However, and as I’ve said previously in these pages, the intermediate- and longer-term technical backdrop remains bullish for equities.

Given the market’s new highs and this holiday shortened trading week, I want to revisit the weekly S&P charts I focus on regularly for perspective on the coming one to two quarters as we head through upcoming earnings season.

As a reminder, I use the weekly momentum indicator in the top panel to track the 1-2 quarter swings in the S&P 500 and cross reference it against the weekly momentum indicator in the bottom panel, which tracks the direction of the S&P 500 index on an equally-weighted basis. At the beginning of Q2, both indicators were overbought and suggested a pullback/pause was likely in Q2 but one that was temporary and woul...

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