SP 500 PE Ratio Breaks supports...

SP500 PE Ratio has broken supports, next real support is in the 7 to 5 area. When looking at PE's I prefer to look at the Dow, which also has a lot more history. If it is any indicator or where support actually exists, then we are looking in the 3 to 5 area for support for PE ratios.

SP500 Earnings

.

As of May (chart below) this year this is what the indexes looked like:

There is no substantial progress in the economy that can drive sustained earnings growth and prices are much higher.

source: EWI international, Robert Prechter

SP500 PE Ratio anyone?

Not that PE's govern stock prices...but worth a peak anyway.