How Much Will The Trade Agreement Help Earnings Forecasts Rebound?

The stock market is still very expensive, so earnings estimates NEED to reverse.

• The news of a trade agreement between the US and China is certainly positive for the stock market. The question now is whether this change will be enough to help earnings growth reverse higher in a significant way or not. Earnings growth estimates HAVE to reverse in a substantial manner…to keep the stock market at its present level (and especially to push it towards its all-time highs).

• We’ll be watching the NDX Nasdaq 100 index particularly closely for clues on this front. Whether it can hold above one key line…or falls back below it…over the coming weeks, should be very important for the market’s outlook going forward.