The S and P 500 has fallen over 2% this year. It is time to get some fundamental and technical perspective on the market. First the fundamentals from Multpl.com. Looking at the Shiller P/E ratio we see that the market is into overvalued territory sporting a #P/E of over 23.
Next looking at the #dividend yield on the S and P 500 below, it is closing in on all time lows also suggestive of an overvalued market.
For a technical picture I turn to Permabear Doomster for some long term perspective. The market appears over stretched long term with no meaning full correction since 2011. It has broken down below 1840 after making a series of lower highs between 1940 and 2135. Market internals have broken down and bearish divergences in market indicators implies downside in the upcoming months. Currently a rally has occurred from the lows near 1800 which may not hold in the future:
Support - 2080
Resistance - 2135
All in all the risk reward trade for the long term appears to be on the down side.
For a technical picture I turn to Permabear Doomster for some long term perspective. The market appears over stretched long term with no meaning full correction since 2011. It has broken down below 1840 after making a series of lower highs between 1940 and 2135. Market internals have broken down and bearish divergences in market indicators implies downside in the upcoming months. Currently a rally has occurred from the lows near 1800 which may not hold in the future:
Support - 2080
Resistance - 2135
All in all the risk reward trade for the long term appears to be on the down side.
S and P 500, fundamental and technical snapshot http://t.co/UDrHrs3ZFF pic.twitter.com/z5zjOWLwGp
— samuelR (@RajveerRawlin) September 4, 2015
Thank you for sharing your tips! This is very helpful and informative! I’m looking forward to seeing more updates from you.
ReplyDeleteShares to Buy