The S&P 500 index has recently reached its all time high level, buoyed by US economic optimism (?). http://www.usatoday.com/story/money/markets/2016/08/11/stocks-dow–sp500-thursday-wall-street/88557406/
Overbought signals are clearly present in the MACD indicator.
Fundamentally, we have seen the current 30 day average trading P/E of 20.17x exceeded the long term historical P/E (since 1998) of 19.43x.
In terms of price to book ratio, the current 30 day average trading P/B of 2.83x approximates the long term historical P/B (since 1998) of 2.94x.
The current dividend yield of 2.10% is below that of its long term historical average dividend yield (since 1970) of 2.93% (signifying potential overvaluation).
Investors should monitor the S&P 500 index closely and trade with caution, as the index appears “overvalued”.
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