The Bull Market Isn’t Sick Anymore (NYSEARCA:SPY)

• 43 of 48 S&P 500 reporters beat estimates so far, a 3.4% average surprise. • Buyback participation is under a third now but should exceed 80% within weeks. • Forward P/E near 19 makes the S&P 500 look cheap despite rotation pain in tech. The S&P 500 remains the most buyable equity index right now, and I'm long both the cap-weighted SPY and equal-weighted RSP. Despite a rough week for the index, most individual constituents traded positively—the heavy weighting of mega-cap tech names masks broader strength underneath. Earnings season is off to a strong start: 43 of 48 reporting S&P 500 companies have beaten estimates, with an average surprise of 3.4%. That's below Q2's pace, though it's too early to draw conclusions from such a small sample. Corporate buybacks are another tailwind building in the background. Less than a third of firms are currently active buyers of their own stock, but that figure should climb above 80% within a few weeks as blackout periods lift, bringing a strong corporate bid back to the market. Breadth reclaiming leadership from big tech could mean near-term pain for tech stocks and a choppier-looking index, at least temporarily. But with the S&P trading at a forward P/E just under 19—its cheapest level in a while—I'm not passing up this opportunity.