Yeah, I'm using his because I don't subscribe to stockcharts anymore which doesn't allow me to save them and then publish here. But I agree with the way he's seeing it.
I'm telling you, we're at a classic valuation level here which typically turns things hard the other way. Now, when you add in the cycles, watch out.
Remember, the fibo retracement was always about 1200 on the SPX from the 1550 to 666 level. 1550 - 666 = 884 point drop. 61.8% of 884 = 546. 546 + 666 low = 1212 target on the SPX.
So, clearly the market is timing this perfectly with the typical March topping timing. Remember March 2000? The top of all markets then? We're currently not far from those valuations now and we're in a MUCH worse economy and even worse outlook considering the jackasses running the country now.
Just sit back and watch what happens.
What I find very interesting is what no one is talking about -- For those who strictly use fundamentals for valuation and ignore technicals, well, how do you even get to a PE of 32 on the SPX (March 2000 high) now with the loss in EPS due to the new healthcare tax break removal? Didn't anyone notice what AT&T said? Almost a .17 per share loss just due to this?? What about CAT? And on and on.
The future PE of the SPX now is probably more in the range of over 40!
AI
