while valuation is a concern, but fundamental remains strng

a. With some 95% of companies already accounted for, S&P 500 earnings per share growth is tracking over 13% for the third quarter. 

We can look at this vs. concensus, and long term history. 

comparing the 13% with the 7.4% consensus forecast
also comparing it with the 10-11% long term average (since 2010)

 

b. revenue grew 8.4%, also crushing expectations. 
compared with the 6.9% (last 5 years), and 5% (last 10 years）

 

 

An argument can be made that the strong earnings and revenue growth can justify the not cheap multiple.

The wild card is the Fed. If the fed does not cut, I guess some air will come out. So the PPI can PCE later this week will draw investors attention. At this point , market has priced in a very high odd of cut.