By Steven Russolillo
To be sure, the earnings picture still looks fuzzy. Corporate profits as a whole have been disappointing and the latest worry is more companies are slashing guidance rather than raising estimates. And the fact that the Dow has failed on several occasions to push through its recent highs is causing some concern among the technical chart watchers.
“As long as the Dow Jones Industrial Average is unable to break overhead resistance at 12,751 to 12,876 we will assume that a multi-week corrective decline is emerging,” said John Kosar, director of research at Asbury Research.
But for now, stocks have been able to plow ahead and notch solid monthly gains in the face of the European debt crisis and lackluster corporate earnings. Until additional evidence suggests otherwise, it’s hard to argue with that recipe for success.