As the bottom-up EPS estimate declined during the first two months of the quarter, the value of the S&P 500 increased during this same time frame.
From June 30 through August 31, the value of the index increased by 3.4% (to 2170.95 from 2098.86). This quarter marked the 16th time in the past 20 quarters in which the bottom-up EPS estimate decreased during the first two months of the quarter while the value of the index increased during the first two months of the quarter.
The blended earnings decline for Q2 2016 is -3.2% (with 2 companies yet to report). The second quarter marked the first time the index has seen five consecutive quarters of year-over-year declines in earnings since Q3 2008 through Q3 2009.
But that doesn't matter... the drying up of the "mother's milk" of the stock market has become entirely irrelevant...