Despite troubling signs such as the unending supply bottlenecks and burgeoning inflation, especially good corporate earnings news has buoyed the stock market. The S&P 500 is ahead 0.31% today, logging its 60th record this year.
Car rental company Avis Budget Group, home products purveyor Clorox, drugmaker Pfizer, and athletic gear provider Under Armour all jumped in price as the market rally kept up its solid pace after a downdraft last month. Even the news that the Federal Reserve is expected to announce tomorrow that it is tapering its massive bond-buying campaign is being treated as almost a non-event by investors.
There is also some evidence that the market is getting too frothy, with the 14-day relative strength index going over 70, which is a traditional demarcation line for overbought. That, of course, could spell a market top.