When “Mother’s Milk” Runs Dry

For the third time in six months, US equity markets have exuberantly decoupled from earnings expectations thanks, in large part, to jawboning and coordination from Central Banks. With stocks near record highs despite the earnings “mother’s milk” expectations tumbling, one can’t help but wonder, as CNBC’s Bob Pisani did this morning, given the comments from Evans, Lockhart, and Bullard, “It’s possible the Fed has seen the market reaction and become alarmed by the complacency.”

Mother’s Milk no longer needed it seems…

And just in case you think earnings don’t matter, here is the technical side of things – The S&P 500 is over 6% above its 50-day moving-average, the most since 2012 and at a level that has historically indicated a notable and tradable pull back…