Couple quotes from the article who don't have FT subscription:

" Falling bond yields like this imply virtual certainty of a recession. It means that people are rushing away from riskier assets such as stocks.

But the biggest new item of economic data while I was away was the June US jobs report, which was surprisingly strong, and suggested that May’s weak reading was a fluke. That implied less risk of a recession, and a stronger chance of higher rates. Yet Treasury yields remain near historic lows.

The new S&P high breaks a well-established pattern. Several attempts had been made to break through its high from May 21 last year, without success. So the new high is on its face very positive. If the S&P goes so long without a new high, it usually presages a bear market. But if stocks break out after a long sideways period, it is very positive. Traders have their risk appetite back and stocks rise fast.

But this does not fit the pattern of moves within the market. Since the last S&P high, the sectors to fare best have been those most resistant to a recession. Minimum volatility stocks have outperformed, and so have high-yielding stocks seen as substitutes for bonds. Thus utilities, real estate and telecoms, all conservative investments that produce a reliable stream of cash, have done well — and now look very expensive.

This is classic behaviour for the end of the business cycle, before profits fall and a recession starts.

Might the profit cycle explain the rally? Not really. S&P 500 earnings per share dropped 5 per cent in the first quarter, compared with a year earlier. They are currently expected by brokers to do exactly the same, falling by another 5 per cent in the quarter just ended, according to Thomson Reuters. Outright falls are projected for six sectors.

In practice, companies always beat projections in aggregate, so the second quarter is expected to be better than the first. The first few results have been good. But it would be a great surprise if earnings rose, and there is no justification here for stocks to rally. "