Look at this Renko chart (which I use to get a better fix on mid-term trends). As you can see from this chart, we are clearly in a bullish phase with a smaller bear-trend pullback. With majorly strong support for the S&P at 900 and the contracts sitting at around 912, a monkey can predict that Tuesday won't see much of a down-trend. Of course people were selling before a long holiday, especially with terrorism concerns. Provided nothing extraordinary happens, we should see a climb back up on the S&P until resistance is hit again at 925 -- which we will either break or flirt with for awhile longer. The market is unique at every point, but this is just my best educated guess based on S/R, technicals and fundamental overview. aphie
Mgkrebs...are you any relation to the originator of the Krebs cycle? Anyway, I agree completely with the view of over-valuation. The only fundamental I use for reference is the P/E. This is a value driven market. The P/E's are as you say entoto, 30-%-40% too high. Sure if the E's start increasing then the P will become justified. But what is the 6-12 month forecast for real earnings. Although I did see a beautiful commercial for Boeing today. This stuff is all conjecture...after all, I am sure of only one thing...