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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (15794)	1/13/2003 9:18:42 AM
From: Dan Duchardt	Respond to of 19219

Just what insane PE are you using? Not talking about P/Es at all. The observation was about the price action of the indices. The thing about P/Es is that there are obviously two factors involved. When earnings are as bad as they have been, it does not take all that much improvement to change them by a large percentage. If there ever is a real improvement in the economy, P/E ratios can return to "historical norms" with no further reduction in price. I'm not saying it will happen that way, or when it will begin. I was just observing that S&P price has in fact reached the 50+ year average, and Dow still has quite a ways to go. Both could find their way well below average before finding bottom.