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.  The FED’s Open Market Committee met last week and reiterated its intent to keep a lid on interest rates (short term rates that they can control directly) for an extended period of time.

BUSINESS PROFITABILITY:  I graded this factor an A (very favorable).   Many companies have reported their profits to the public shareholders in the next 5 weeks.  Companies exceeded expectations, on average, sufficient to maintain a grade of A.