Weekly commentary

I remain bullish this week, even though the market is mildly overbought. Some profit taking along the way would not be surprising. Remember, overall trend is up. Once the trend is formed, the market is very likely following its path for a longer period of time than people expect. This long trend is supported by the good fundamental news, which includes good inflation data last week. The core CPI has been up a negligible 0%, 0.1%, and 0.1% over the past three months. With the earning season off to start, I expect the market will respond well to the upside surprises.