S&P500 has P/E ratio 18.

The valuation of index S&P500 is currently 18. Just 5 years ago it was doubled. From this point of view the bull trend is healthy and supported by corporate earnings. Ongoing earnings results are beating analyst estimates. 170 companies beat, 40 matched and 70 missed street expectation. Together with highly possible US rate cut we will see nice end year stock rally.

Now I am very bullish with tech sector but in future I'll switch to financial and banks again. Especially brokerages which are not really involved with subprime lenders issues but they've been hit by negative sentiment in financial industry.