Hello traders,

Earnings season is winding down, and it has been rather unexciting. Overall, company profits have dropped by 10% compared to the same period last year, and the situation doesn't seem to be improving yet.

The S&P's earnings per share for the last 12 months were about $218, and it's estimated to be around $240 for the next twelve months.

If you take the current price and divide it by the future earnings of the S&P, you'll find that it's trading at 18 times forward earnings.

As I mentioned earlier this week, I believe that, when we look at the overall market, it's probably about 10% more expensive than it should be. But when we check out how things are shaping up from a technical standpoint, it seems like the market is getting ready for a strong finish to the year. It's worth mentioning that if we don't consider the magnificent 7, the market's price-to-earnings ratio is just 16 times.

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