As we all know the mkt discounts future economic data about 6 mos. in advance.

The current consensus estimate for SPX earnings in 2026 is $325. At the current

price of 7545 we're looking at a P/E of 23.2. Next week the mkt will start discounting

earnings for 2027. The current consensus estimate for SPX earnings in 2027 is $375.

If we assume a P/E of 23.2 remains viable it would take the SPX to 8700.

say about AI at JPM. What do computers do the best? Math, and arranging sorting etc. JPM is all about high volume repeat transactions, how come we never hear him say anything about how AI benefits them. (speed, quality control). He keeps everything close to the breast. (jmho)

https://articles.sto...ay-be-starting/

My turn probability summation system predicts that the window this coming week with the highest likelihood of seeing a turn in or acceleration of the current up trend in the DJIA stretches from Tuesday May 26th through the morning of Wednesday May 27th.

Last week the Wednesday the 20th turn window shown in red on the marketwatch.com plot below caught the meat of a turn up which began a couple of hours earlier on Tuesday, so not quite the hourly low, but the daily one.  The Friday the 22nd turn window may have tagged a top, I suppose entirely depending on what flights of war ending fantasy the POTUS publishes over the holiday weekend.  Looks to me like Iran has him over a barrel, a barrel of oil that is.

This funny money pumped market is so strong that the bearish divergences that I showed last week are bearly there, pun fully intended,  with the Volume AD healing making a new high like the index.  The AD line is still in divergence, but probably not for much longer if this rally keeps rolling on.

At least the Hindenburg Omen that I mentioned last week finally gave a sell signal (+3), but as you can see below it can be very early and sometimes just dead wrong, but I guess it's at least something I suppose for dyed in the wool bears to cling to in this crazy bubble. 

And finally with no Fed meeting this month and a new chairman, the only clues about policy available are in the numerous speeches being made by the governors, and they appear to be all over the map with doves and hawks.  I suppose a better guide to what's going to happen in June is probably the traffic through the Strait of Hormuz.  

Regards,

Douglas

Pakistan Army Chief Asim Munir called off his trip to Iran as Iran supreme leader ordered not to let its enriched uranium leave the country.  Pakistan Army Chief Asim Munir is acting as a key go-between in tense contacts between the US and Iran, but reports say Munir will visit Tehran only if both sides first settle a final framework formula. The condition-based trip highlights how fragile the talks remain

Exclusive: Supreme Leader says enriched uranium must stay in Iran, Iranian sources say | Reuters

It looks without military actions Iran won't give US the enriched uranium as US demands ..................................