Most
of the time the U.S. stock market looks to 3 factors (call them the “pillars”
that support the stock market) to support its upward trend – let’s grade each
of the pillars. 

CONSUMER SPENDING:  I grade this factor a C (neutral).  This is under review for possible upgrade
depending upon the evaluating the results of the Holiday season retail
spending.

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. 10 days ago, the FED finessed
the markets by carefully wording its press release announcing the taper of its
quantitative easing program – more good news!

BUSINESS PROFITABILITY:  I continue to grade this factor an A (very favorable). 

NOTE:  the above grades are unchanged from last
week.