The S&P 500 is going through a period of consolidation after one of the strongest momentum rallies in its history – positive for nine consecutive weeks.

The current mean-reversion is typical and healthy, while a strong, unabated momentum thrust is a very bullish sign over the medium to long term.

A pullback is the typical pattern with which equities re-calibrate their steep rally trajectory to continue rising in a new, sustainably shallow uptrend channel.

Strong earnings growth is likely to keep the party going for now, even if we are in the midst of an inflating market bubble.