Interesting chart showing the Index relative to Normal P/E Range

Here is the chart showing the historical P/E range. The recent earnings crash looks scary, but the range display should return to normal in a few weeks.




......concerned about the consistent overvalue condition that has been the norm since the early 1990s, but it has persisted through two bull markets and two bear markets, demonstrating that investors just don't care about value. And the value range analysis we do, while an interesting curiosity, is not of much use for decision-making in the current environment. Follow the trend.

Full report:  (very technical)
http://www.decisionpoint.com/ChartSpotliteFiles/100312_cspot.html
http://www.decisionpoint.com/TAC/SWENLIN.html