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Nathan Peterson from Charles Schwab remains bullish on the S&P 500 index after the index closed above the 3,350 mark last week, the highest close since late February.  

Key quotes

“With roughly 85% of the S&P 500 companies having reported earnings so far, 64% have beat estimates on the top line while 84% have beat on the bottom line. This compares to the respective 59% and 65% seen in the prior quarter.”

“It feels like the path of least resistance is still probably higher (perhaps traders want to see a fresh all-time cross the tape), but if there is a continued delay in a fiscal relief bill we may see some more downside first. In that scenario it appears that the first level of support would come in around the 20-day Simple Moving Average (3,254). Translation = bullish.”

“At its current level of roughly 23, the VIX is suggesting daily changes in the S&P 500 of roughly 40 points. That seems a bit high when you look at the recent price action in the S&P 500, but remember that the VIX represents a 30-day future volatility estimate. A 23 VIX doesn’t seem unreasonable in my opinion given the high level of uncertainty in the current economic environment.”