Chart of the Day - Corporate earnings up over 700% from crisis lows

I'm sure my readers will be interested in today's offering from the folks at "Chart of the Day"! I'm trying to puzzle out for myself if it's consistent with a wave 2 up in a bear market, or a wave 1 up in a new bull market. Honestly their depiction of the S&P 500 earnings (inflation-adjusted, I believe) in their chart, below, looks to me like either a wave 2 or wave B up in a bear market. I should add, I don't know how they interpret it - I don't subscribe to their "plus" service which apparently gives their take on the issue. I can point out the obvious - that other talented analysts we like to track here, disagree. Terry Laundry has reiterated his bearish view, as I posted earlier this week. Yet Andre Gratian and Tony Caldaro seem willing to take the market as more bullish. Well ... seems to me that one huge test will be whether or nit the market can make new highs, eh?! Meanwhile, let's look at today's information from "Chart of the Day" from their link today at http://www.chartoftheday.com/20100528.htm

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Chart of the Day - Corporate earnings up over 700% from crisis lows

With first-quarter earnings basically in the books (99% of S&P 500 companies have reported for Q1 2010), today's chart provides some long-term perspective to the current earnings environment by focusing on 12-month, as reported S&P 500 earnings. Today's chart illustrates how earnings declined over 92% from its Q3 2007 peak to Q1 2009 low -- the largest decline on record (the data goes back to 1936). Since its Q1 2009 low, S&P 500 earnings have surged (up over 700%) and currently come in at a level that has only been exceeded during the latter years of the dot-com and credit bubbles.

Notes:
- Where's the Dow headed? The answer may surprise you. Find out right now with the exclusive & Barron's recommended charts of Chart of the Day Plus.

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Quote of the Day
"There will always be bull markets followed by bear markets followed by bull markets." - John Templeton

Events of the Day
May 30, 2010 - French Open tennis tournament begins (ends June 7th) - Indianapolis 500
May 31, 2010 - Memorial Day (observed)
June 05, 2010 - Belmont Stakes

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