Age LinesThis current rally is more than six years old now. Stack up this bull run against previous ones going back 85 years and it's 2 years longer than the average. The S&P 500's gain of 213% as of the end of May is also more than double the median bull gain of 101.5%, according to InvesTech stats.
Peaking ProfitsAnother worrisome trend: Corporate profitability is higher than its historical average at this point in the business cycle and it's starting to shrink. That's not good for share prices going forward if you think profits have peaked and there's little upside remaining. Morningstar analyzed the S&P 500's profitability—as measured by net income margin, operating margin, and return on equity (ROE)—and found that it is above its mid-cycle and long-term averages.
No PullbacksThen consider this: the S&P 500 has gone 44 months without a 10% correction. That's the third-longest streak since the inception of the Index in 1957.
Market BreadthAlso, analysts tracked by Wall Street Daily have noticed adverse trends in certain technical metrics that measure market breadth. As Alan Gula, Wall Street Daily’s Chief Income Analyst, recently noted:
"Few than 65% of stocks were above their 50-day moving average. In other words, a relatively low percentage of stocks are participating in the rally."