We are in the midst of the summer doldrums and the S&P 500 has gone nowhere since mid-May.

However, I see last week’s slow-motion advance as constructive as it overcomes geopolitical flare-ups, crashes in extremely over-hyped momentum stocks, and other stumbling blocks.

Three main factors speak to a continuation of the bull market:

Market breadth is broadening as wide swaths of stocks are catching up and the NYSE Advance/Decline line is already making new highs.

Extremely strong momentum is a very bullish sign over the medium to long term, even if it undergoes intermittent, healthy periods of consolidation.

All of this is driven by healthy earnings growth and skyrocketing margins, which are still growing.