SPX- 75% chance of going to 634

Discussion in 'Stocks' started by Port1385, Oct 17, 2008.

  1. That formation on the chart (still forming) is a symetrical triangle with a 75% chance of it breaking to the downside. I know of this formation quite well because BAC was in such formation months ago.

    If the price breaks to the downside then the target is 634. If it breaks to the upside, then we get 1250. 75% chance down, 25% chance up.

    My P/E earnings calculations suggest that the SPX is fairly valued around 500-600.

    Buffett is placing his chips by the 25% section.
  2. I am sure Buffet is not going long the broad SPX and I am sure his research dept has down their work on forward earnings and forward PE's etc.
  3. He doesnt always get it right. In 2006, he bought USG at 40.
  4. Bullshit rally, fundamentals haven't improved one iota.
  5. The S&P 500's PE is within shouting distance of its long term historical average. You are correct, though, to believe lower lows will eventually happen before there is a sustainable up trend.
  6. 1) That's why it's called the S&P-"500"
    2) At a bottom, stocks need to be "undervalued", not "fairly valued". Maybe you're not bearish enough. We'll see. :cool:
  7. lol the charts dont matt
  8. Very good point.
  9. it's a BS that chart stuff
  10. werent you like a raging bull a while back?
    #10     Oct 17, 2008