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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA

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To: J.T. who wrote (12502)6/3/2002 4:06:00 AM
From: Death Sphincter  Read Replies (1) of 19219
 
during those time periods, 1942,1949,1974,1982 the S&P had dropped to a PE under 10....1994 around 14. PE is still skyhigh right now, makes it tough for me to believe its a good launching point for major bull market. large rally fueled by short covering? perhaps. seems as though a PE contraction via several Quarters of current trading range pricing(or a slide lower), coupled with consistent rise in corporate profits would be a better scenario for a bull market setup looking forward a couple years. new reporting standards recently adopted by S&P will curtail hankypanky 'feelgood' earnings of the past decade and make this scenario a bit tougher to play out
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