winks weekend waffle 090409, page-9

In the last day or so I have seen 2 references to SPX trailing PE's of 56 and 59.

Typical bear lows are 7ish.

Yes interest rates are extremely low and all sorts of factors can be attributed.

To me it does make sense that PE's would be stretched in a first move up as markets predict not follow.

Vice versa PE's should shrink early in market declines for the same reason.

Has anyone actually matched up a PE chart with a price chart to see how well peaks and lows of both coincide?

All the same, those PE's are supposedly the highest ever recorded for SPX, so either a real worry or less likely perhaps, a super overbought type initial up move.