Why this market rally still has room to run — until these two signals flash

Nomura strategist Charlie McElligott suggests the current market rally has further upside potential but warns two key signals could signal a reversal soon. The S&P 500 hit its first record high since January 27, 2026, reigniting bullish momentum after a prolonged pause in early-year gains. McElligott’s analysis implies no immediate need to exit positions, though he cautions investors to monitor emerging technical and macroeconomic triggers. The rally’s sustainability hinges on unresolved factors, including Fed policy shifts and corporate earnings strength, which remain unstable. MarketWatch’s Barbara Kollmeyer reports from Madrid, framing the outlook as cautiously optimistic but dependent on forthcoming economic data.