Like a Lego game, this market assembles building blocks that persist in allowing extended upside, even though there’s no compelling valuation or other driving force, writes Gene Inger.

In fact, Oil even slipped as support for S&P 500 (SPX) efforts.  

Reuters: Bank, healthcare stocks pressure S&P; tech powers Nasdaq to record Tuesday.

chart 1 
However, we looked for further temporary upside and we have it.

It hinges of course on the unknown outcomes of known challenges, as well as the prospect of diminishing rates of earnings growth in an advanced cycle.  

chart 2

So, whether we’re addressing peace emerging from the Korean Summit, or not, or the European financial tensions, or global monetary shuffling as well as limited fund-flows over the hot Summer ahead…well there are lots of variables and they are occurring in an already-extended market.

chart 3

By the way I heard most of the Apple (AAPL) WWDC presentation and mostly am impressed by privacy and security enhancements in the new software.  

CNBC: Apple shares hit record on Monday, first day of developer conference.

Recode: Everything important that Apple just announced June 4.

Fortune: Apple takes aim at Facebook with data privacy features in iOS and macOS

chart 4

In-sum: the pattern evolves as more upside little justified. At the same time earnings are strained to increase at the prior pace.

--Manafort gets accused of witness tampering;
--Putin invites Kim to a Fall Summit in Moscow;
--and generallyn delusion trumps reality, also in the spirit of a Lego game.

So, a bit higher but remain nimble. 

View Gene Inger’s trade ideas on AT&T and LightPath, how millennials can get started investing and how he’s a pioneer in financial broadcast journalism here

Recorded at MoneyShow Las Vegas May 14, 2018
Duration: 4:10.

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