Market Call: Blue Angels Flying High

Our Blue Angels framework shows that the S&P 500 was back in record high territory last week as S&P 500 forward earnings rose to yet another record high (chart). Meanwhile, the S&P 500's forward P/E has been relatively steady just above 20.0 in recent weeks.

The S&P 500's forward P/E with and without the MegaCap-8 stocks is currently 20.6 and 18.2 (chart). The MegaCap-8 is currently trading at a forward P/E of 28.3.