What a relief to finally have a good relief rally in the stock market. Consider the following:
(1) The S&P 500 was up 6.4% this week, and 6.7% since it bottomed on Thursday, June 16 at 3666.77. It was down 23.6% back then from its January 3 record high. Now it is down 18.4% from that peak.
(2) The S&P 500's forward P/E has rebounded from 15.3 on June 16 to 16.3 today. We previously opined that 15.0 might be the downside as long as the economy doesn't fall into a recession, which we still assign 45% odds.
