First, an update on that recent weekly chart of the S&P 500 I've been following, the one showing how this leading index is testing important support.
You can see that the S&P 500 closed right at support at its January weekly closing low. That's interesting, eh?
Now, let's put it in perspective with one of my favorite charts, showing U.S. stock movements tracked with the Fed's quantitative easing programs.
You can see that the S&P 500 is right back at that big line of support. Meanwhile, QE has ended. The Fed isn't there to push the market higher.
My third chart on the S&P 500's P/E ratio didn't work out. If I get the chart over the weekend, I'll add it.
But the forward p/e stands at 15.58. That's just below the the long-term average of 15.8. So, the S&P 500 is not a bargain despite this week's sell-off.