Earnings Update---8/17/2016

Dave Wilson on Bloomberg Radio reported today that earnings were expected to come in at a -5% clip for the quarter.  Thus far, the drop has been 2.8%.  Still a drop, but way better than what the market had priced in.  Hence, the rally.  

According to fund flow data, investors are still heavily under-weight stocks and over-weight cash.  This does allow for more upside, if the news flows continue to be positive.