SMH/QQQQ

The markets are up and running and unfortunately I have some technical issues so pictures and posts will be limited today.

The market internals are showing 1,500 to the red and on the brighter end of things the SMH and the QQQQ are outperforming (for now). So maybe, just maybe, we get the rally today with a double bottom in and a lift over the 200 day SMA to stay.

If any one is interested, the SPX is now trading at a bit over 14x 2006 estimated earnings of $85, so the market is not expensive, unless of course the earnings start tanking or if something bad happens. Of course the yield is still under 2% so maybe the earnings are not quite what they tell us.