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Friday, February 24, 2017 9:04:24 AM
What Does The S&P 500’s Forward P/E Controlled For Volatility Signal?
* February 23, 2017
In a blog post in early February, we showed that our Complacency-Anxiety Indicator hit a new high. Another way to measure greed overwhelming fear is the relentless rise of the S&P 500 forward P/E over the VIX. The spread between these two measures can also gauge complacency. As seen in the chart, this indicator has also soared to an all-time high. Momentum continues to drive the broad market trend and valuations have taken a backseat, emblematic of blow-off phases.
How long can this overshoot phase last? There are obviously no easy answers. However, in the absence of any major monetary, economic and/or geopolitical shocks, an examination of our Composite Technical Indicator suggests…
For additional details, please refer to the U.S. > Equity Strategy Report titled “Overbought, But…”, available at uses.bcaresearch.com.
https://blog.bcaresearch.com/what-does-the-sp-500s-forward-pe-controlled-for-volatility-signal
• DiscoverGold
Click on "In reply to", for Authors past commentaries
* February 23, 2017
In a blog post in early February, we showed that our Complacency-Anxiety Indicator hit a new high. Another way to measure greed overwhelming fear is the relentless rise of the S&P 500 forward P/E over the VIX. The spread between these two measures can also gauge complacency. As seen in the chart, this indicator has also soared to an all-time high. Momentum continues to drive the broad market trend and valuations have taken a backseat, emblematic of blow-off phases.
How long can this overshoot phase last? There are obviously no easy answers. However, in the absence of any major monetary, economic and/or geopolitical shocks, an examination of our Composite Technical Indicator suggests…
For additional details, please refer to the U.S. > Equity Strategy Report titled “Overbought, But…”, available at uses.bcaresearch.com.
https://blog.bcaresearch.com/what-does-the-sp-500s-forward-pe-controlled-for-volatility-signal
• DiscoverGold
Click on "In reply to", for Authors past commentaries
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• DiscoverGold
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