The $SPY climbed to a penny above all-time highs today and then fell dramatically for absolutely no reason, other than printing a new historic figure. I have said it many times over the last several years: name the sell off and it should be bought, though when we start selling off for no reason, it may be time to reevaluate our trading habits.
Today's intraday pullback was alarming, but not trend-changing. The trend remains firmly higher and stocks are the place to be. Today's pullback will bring out the "double top" callers and reinvigorate the Great Depression chart comparisons that have been thrown around.
Weak data remains bullish for stocks as central banks globally will do all they can to support asset prices. Strong data will remain bullish for stocks, as central banks do not want to damage fragile investor confidence. Basically, until we see inflation start to rear its ugly head and take hold a low inflationary environment is conducive for further asset-price manipulation from central banks.
What does this mean? The dips, including today's, should still be bought. I don't see another meaningful pullback coming until we break $190 on the $SPY.
We called for stocks to pull back at the start of 2014, and then we said they would rally,
I think that rally will continue, even if there are some period bouts of consolidation.