Most
of the time, the U.S. stock market looks to 3 factors to support its upward
trend – let’s grade each of the factors:           

CONSUMER SPENDING:  I grade this factor a C (neutral).

THE FED AND ITS POLICIES:  I continue to grade this factor an A+ (extremely favorable) because the
FED cannot do much more than it is doing to support the stock market and asset
prices.  Concerns about the FED changing
its stance spooked the stock market last week (and the bond market the last 4
weeks); but,  we believe there is only a
slim chance the FED will change its accommodative policy anytime soon.  We believe the FED will take steps in the
weeks ahead to further calm the markets. 

BUSINESS PROFITABILITY:  I graded this factor an A (very favorable).