Earnings are beating estimates, but revenues are below. Look for market pullback starting Tuesday - Wedn ... SPY looks toppy at 960 intra-day high of June ... solar eclipse is causing many technicals to view SPY 960 as double-top, with pull back into the mid-800s.
SPY earnings for 2009 likely to come in around $55 (operating basis) ... 15x PE gets to SPY $825 as fair value ... this is consistent with midpoint of trading range of 670-960.
With plenty of money on sidelines waiting to get re-invested, expect pull back to 850-870 level to provide very strong support ... perhaps 0.318 retracement is all we need to resume next leg up.
Earnings to Watch This Week [View article]
SPY earnings for 2009 likely to come in around $55 (operating basis) ... 15x PE gets to SPY $825 as fair value ... this is consistent with midpoint of trading range of 670-960.
With plenty of money on sidelines waiting to get re-invested, expect pull back to 850-870 level to provide very strong support ... perhaps 0.318 retracement is all we need to resume next leg up.