1. On each of the past 4 failed attempts, the PMIs rolled over, from what were quite stretched levels to start with. That is certainly not the case this time around, where the breakout is happening while PMIs are relatively subdued
2. The breadth of the breakout could easily widen. Out of 16 countries that make up the index, only 4 have recorded new highs ytd. There is scope for others to catch up.
3. Earnings of SXXP are subdued, both in absolute terms, still down 10% from 2008, and especially so when contrasted to global earnings. SXXP earnings relative to the World are more than 30% below past cycle highs.
4. dividends for SXXP have moved to fresh highs, which could provide a floor for the broader market.