1. We do not change our broader call for a multi-year trading range of 2400 – 3000 for the S&P. With valuations at the high end of
fair value and continued conviction that earnings estimates still need to be lowered, we would avoid betting on a melt up
2. The high beat rate this earnings season is not getting us excited given how much
estimates were previously lowered.
3. we think the market would also need to see a better growth outlook, a peaking dollar, and an uptick in consumer confidence for the melt up to play out from here