The primary focus of the market at this stage appears to be on both the geopolitical hotspots in Ukraine/Russia, Syria and Iraq and the 2,000 level on the S&P 500. The big, round numbers on the major indices (especially the Dow and S&P 500) always seem to bring the debate of valuations back in focus and cause traders to question whether or not the bulls can simply keep on keepin' on. This was certainly the case Monday as the S&P briefly breached the 2,000 level. However, as expected, there were sell programs waiting at that level with the semiconductors being the bears' weapon of choice. Today's action will likely be dominated by the raft of economic data to be digested including Durable Goods, the Case-Shiller report on home prices, the Conference Board's Consumer Confidence Index as well as the Richmond Fed report on business activity.

Current Market Outlook

This remains one of the most hated/distrusted markets I've seen in quite some time. While the S&P is up nearly +200% since the March 9, 2000 low, there is always something to worry/complain about in this market. Currently, the primary issue is valuations, which, as we've been discussing in our Daily State of the Market reports, are simply not excessive at the present time. The bottom line here is that although stocks are not cheap by any measure, they are also not dangerously overvalued as some are suggesting. In addition, the trend is up and our market models are moderately positive on balance.

Looking At The Charts

The three charts below tell the story of the current market. The question of the day is if the S&P 500 has indeed broken out to new high ground. As can be seen in the first chart below, it appears that the S&P has produced ...

With the S&P moving back to new all-time highs, the debate over valuation levels in the stock market is heating up again. Therefore, this would appear to be a good time to continue our in-depth look at a multitude of ...

If it's Friday then there must be new developments in the Russia/Ukraine situation for traders to worry about. Sure enough, this morning there is word that Russia has ordered a convoy of between 70 and 90 aid trucks to cross ...

While geopolitical issues remain (China closed 4 high profile McDonalds restaurants in retaliation for the West's economic sanctions and a rescue attempt of an American journalist in Iraq failed) traders appear to be focused on the flash PMI data out ...

The focus of the market is back on geopolitics today. Video of Islamic Militants apparently beheading American journalist James Foley and threatening to do the same to another journalist has refocused attention on the situation in Iraq. According to the ...

Easing geopolitical tensions continue to be a driving force in the current market. Based on talks between Russia, Ukraine, and European leaders, it appears that the situation in Ukraine may be resolved in the near term without further interruptions in ...

The topic of the day from a short-term perspective is the state of the geopolitical issues in Ukraine/Russia and to a lesser extent Iraq and Gaza/Israel. The way this game is played is simple, really. When headlines speak of troop ...

Everybody knows that the current bull market has been one for the ages. Everybody who has been long stocks for the last few years has likely enjoyed the ride. Everybody knows that the current bull market is getting old. And ...

Professional money manager Paul Schatz is filling in for Dave M. this morning. Below are Paul's views on the current state of the market.

To reiterate a comment I think I have made each and every week for at least ...

When trying to succeed in the stock market, at least half of the battle is learning to identify the type of environment you are dealing with. If the two devastating bear markets that occurred since the turn of the century ...

Last week, I had the pleasure of driving up California's coast from Los Angeles to San Francisco. While the traffic outside of L.A. remains is numbing, the rest of the trek is a delight (if you aren't in a hurry). ...

For the past four days, this missive has offered up a baker's dozen reasons why it might be time to be cautious on the stock market. It would appear that Thursday's action proved to be an exclamation point on the ...