This means that the stock market is not on ice that is thin enough to indicate a new bear market.
When examining the stock market I look at the A/D line analysis of three main time periods monthly, weekly and daily.
The A/D line analysis turned positive in late February and the monthly A/D line made a new high in May.
The monthly A/D line peaked in May 2007 (line 1) and then formed a lower high in October 2007, line 2.
Before the monthly A/D line could form a classic top it would require a sharp market decline followed by another push to new highs.
US corporations tend to pay a much lower rate of tax than the headline tax rate suggests.
Within that period, 1951 the year of a 9% absolute increase in the corporate tax rate saw a 24% rise in the stock market.
In fact, one of the things we can say about changes to the tax code is that historically tax changes have often coincided with periods of relative calm for the economy.
This is an important reminder that tax changes are only one component of stock market returns, and potentially a small factor at that.
The surprising truth about corporate tax changes is that historically the markets haven’t reacted to them in the way you might expect.
Stock Market Fights For Upward Momentum As Energy Shares Rally
Chesapeake Energy Corp. (CHK) rose 8.9% while Hess Corp.(HES) jumped 4.6% and Marathon Oil Corp.(MRO) shares rose 4.5%.
Meanwhile, the S&P 500 index rose 2 points, or 0.1%, to 2,361.
Boston Fed President Eric Rosengren said the central bank should set a default of a rate hike every other meeting this year (http://www.marketwatch.com/story/feds-rosengren-wants-a-rate-hike-at-every-other-meeting-this-year-2017-03-29).
Gold futures (http://www.marketwatch.com/story/gold-drops-in-back-to-back-sessions-as-dollar-sellers-stand-down-2017-03-29) dipped 0.3%, and a key dollar index rose 0.3%.
Economic news and Fed speakers: Chicago Fed President Charles Evans said the fundamentals of the economy were good (http://www.marketwatch.com/story/feds-evans-says-he-supports-one-or-two-more-interest-rate-hikes-this-year-2017-03-29-91033510), and called for another one or two interest-rate increases in 2017.