Markets mixed but earnings a “solid tailwind”

Markets were mixed on Monday.

The S&P 500 fell 0.4 percent to end a six-day winning streak.

However, elsewhere, the STOXX Europe 600 rose 0.2 percent and the Nikkei 225 jumped 1.1 percent after Japanese Prime Minister Shinzo Abe's ruling coalition secured a two-thirds majority at Sunday's election.

The decline in US stocks on Monday did little to dampen optimisim.

“Earnings remain a solid tailwind for equity prices,” said Robert Doll, chief equity strategist at Nuveen Asset Management LLC, in a note.

Avi Gilburt, an Elliott Wave technical analyst and author of ElliottWaveTrader.net, does expect a pullback in the coming weeks but then expects the market to “rally into the end of the year”.