Chart of S&P500 vs. S&P500 PE?

I heard someone that has been in the market a long time state that you sell stocks when the PEs are low and buy when the PEs are high. Obviously this refers to investing and not trading. I'm assuming the basis of this statement is that the market is forward looking and begins to rise a quarter or two ahead of a recovery in the economy. I was thinking that a chart of the S&P500 vs its PE or earnings would be interesting to see. If anyone has this or something that would show this relationship I would appreciate it. It could be something other than the S&P500, but I thought this would be a good example. Thanks for any comments.

 

In the 40s capital taxes were much higher and the gross returns had to be also larger.

 

Last month Barrons reported "12-month trailing earnings" @ $46.10.

That leaves current P/E at 19x.... hardly cheap in spite of the clamor about "value here".

Earnings likely to fall further in '09... perhaps significantly.