Zignals

The Obama Bottom

> With a time-proven bear market low "requirement&q... of a
> PE of 8 on forward earnings, and forward earnings expected now to
> be $50-$60, the S&P500 needs to get under 500 to find a real
> lasting bottom.
>
> That is much more relevant than trendlines or moving averages.

> It will happen.

When you factor price into a decision making process you are dealing with a technical; so P/E is a hybrid technical/fundamental indicator and is as relevant as any trendline or moving average.

Given that, I would be surprised to see a S&P below 500. Each new quarter will revise for the forward P/E and therefore the projected target for a "bottom".