US stock market valuations...

updt 05th july 2010:

an improved earnings estimate for next year can make the p/e valuations a bit attractive for next year.

one can also see the inverse relation between div yield and p/e ratio in above table.

technically the dow and nasdaq have broken down below their respective significant supports(9888/1040) of recent times. as such the outlook becomes bearish for medium term and it seems has potential to go down as much as 900-950 if 1000 lvl is also convincingly broken down in s&p500(us).

while a short to medium term bounce or pullback can occur anytime due to oversold lvls, but any such reversals from very recent lows is yet to appear on the charts. when such a pullback/relief rally does come, may be quite a significant one on the upside and might get sold into if 1145 is not decisively crossed and closed above.

pls go through my accurate analysis/view on dow jones and s&p500(us) in following links 16th march 2010 03rd may 2010 11th may 2010