Quite a few analysts have expressed concern recently about the lower number of stocks making new highs on this most recent push by the averages to new high ground, which has created a form of breadth divergence. (There were 536 new highs at the peak in May compared with only 371 now.) In addition, although the NYSE advance-decline line did exceed its May high last week it did so by only 71 net advances, thus avoiding its own divergence by the slimmest of margins

David Fuller's view Levitating US share indices such as the S&P 500 and the Nasdaq 100 are somewhat expensive following the heady gains since mid-November 2012. There are also uncertainties over the duration of quantitative easing (QE), global growth for the remainder of this year, and the outlook for corporate profits. I expect at least some mean reversion towards the 200-day MAs.

Over the considerably longer-term, Fullermoney likes the US stock market because of: America's competitive energy prices, its technology lead, and its considerable number of powerful Autonomies.