Check out the session settlements for Mar06 and Mar07. Both have meaningful numbers of contracts and that's why I have chosen these to look at. It's no longer a case of wondering if an "inversion" will take place.
"I'll cut straight to the chase this week. Market valuations remain untenably rich here, at 19.7 times peak earnings (again, when trailing net earnings for the S&P 500 have been at a fresh record, the average P/E multiple for the S&P 500 has been just 12, an average which doesn't vary much even if you restrict the data to periods of low inflation and interest rates, which at present aren't particularly low anyway). I say “untenably” because market action continues to display internal divergence that isn't characteristic of robust bull markets, and on a short-term basis, the market appears substantially overbought too.
Last week, for example, despite the fresh high in the S&P 500, the number of stocks registering new 52-week lows expanded to 422, easily outpacing the 286 achieving new highs. Breadth was also unimpressive for a push to new highs, with the weekly advance/decline figures at 1893 versus 1609, respectively. Nasdaq, which was the strongest index, actually exhibited more decliners than advancers on a weekly basis (a good part of that strength was thanks to Google – and I'll say it again – if Google is worth $300 a share - not to mention $400, capitalism is broken).
It's also important to recognize that over the past 6 months, the market has given a serious preference to “garbage stocks,” with stocks having low return on equity, return on assets and return on invested capital being stellar performers, while more stable and durably profitable companies have been relatively flat. Likewise, companies with high betas and those ranked “C” by S&P 500 for financial stability have performed strongly, while lower beta stocks and those with financial quality rankings of “A” have stagnated. Historically, garbage stock rallies like this are a hallmark of the late, narrowing, impatient, speculative phase of a bull market. In other words, we're not seeing the sort of robust willingness to sponsor stocks and take market risk that you typically see in healthy markets. Rather, market action suggests a broad pattern of distribution and diminished sponsorship, even as investors chase a narrow field of garbage in hopes of somehow making a buck."
Market Data 
Markets 
AI
