There has been a disconnect. Individual investors don't seem to care that the market continues to rally.
Here is a chart showing continued investor out-flows, even as the Dow Jones Industrial Average hits multi-year highs.
History seems to be on the Bulls' side. Here is a Bespoke chart showing what has happened after the S&P 500 Index rallies 15% (or more) in a three-month period.
It has been a pretty bullish indicator.
Moreover, sentiment is not not so frothy since the rally has been so widely ignored by individual investors. As a result, traders don't expect much panic-selling on a move down.
In addition, the Markets have been resilient through some scary news cycles recently.
The question is: can it continue?
Well, if the Market can't shake-out some sellers, the next surprise could very well be another move higher.
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