Breadth did not make a bearish divergence leading up to the January 2018 high

Bull market tops are marked by long periods of bearish breadth divergences. In other words, breadth needs to be consistently deteriorating before the last rally of a bull market ends.

You can see that breadth always made a big bearish divergence before the 2007, 2000, 1973, and 1968 bear markets began.

The economy continues to improve

“The stock market is not the economy” is true on a day to day basis but not on a long-term basis. The stock market and the economy move in the same direction over the long run.

The economy continues to improve today, showing no signs of slowing down.

You can see the unemployment rate is clearly trending lower.

Manufacturing PMI is improving and trending higher.