P/E ratio of market index

[lolr2]

generally is the moving average of index P/E across different time periods used to predict the market movement ? is it just same as the price movements of stocks that move index or anyway better than it ? is tech analysis done to index P/E's


i dint know wr to post this either in tech thread or fundamental analysis thread

 

[ivanboesky]

I dont think technical analysis is done to Index PEs. However, standard deviation bands are drawn around the current PE to see if there is any significant divergence from the mean.

Be careful while using a PE number though. Check if it is a trailing PE or a projected PE (and whch years earnings are used for the E).