The fourth quarter of last year was rough for the markets, as the main American benchmarks, the dow jones and the S&P500, had plummeted. The new year brought better market conditions, as both benchmarks saw a positive first quarter. Very recently, the S&P500 reached new historic highs. Yet, investors believe it’s too early to think the storm is over.

Earnings drove the markets higher

The positive earnings reports from many companies released on Wednesday were the factor that drove the markets further up. Sectors like banking and consumer goods performed well. Other factors behind the move include the better than expected data released from China, and the dovish tone from the Fed.

Investors remain skeptical

Investors are not buying it, however. Low volatility and volume are not favorable. Investors are not yet convinced that the up move is a strong trend continuation. This is because very few companies in the S&P500 managed to reach new highs. The rest in the index did not.

More earnings reports ahead

Market participants are still waiting for earnings reports from the technology and energy sectors, to be released soon. In addition, there’s anticipation regarding the Healthcare sector, which is a concern for many. Those reports will probably make the market direction more clear.