The stock market just flashed two bullish indicators that suggest the stock market could continue to rise in the second half of the year, according toDetrick, who has been consistently bullish this year as thehas rallied nearly 10%, remains steadfast in his view that the economy will avoid a recession and continue to surprise to the upside, in tandem with the stock market.
Of the companies that have reported, 78% beat expectations. And while year-over-year profits are set to decline 2.2%, that's much better than the 6.6% decline that analysts expected less than two months ago. "MSCI US trailing 12-month earnings have officially bottomed and are now heading higher," he said, citing research from Ned Davis Research."This is a very strong signal that all the worries about the impending recession have been greatly exaggerated and corporate America likely sees better times coming."From a technical perspective, Detrick highlighted that the S&P 500's 200-day moving average is beginning to trend higher after moving lower since April 2022.