U.S. Stocks Drop on Earnings

“The S&P 500, the benchmark for U.S. equities, trades at 11.8 times estimated earnings over the coming 12 months, compared with a price-to-earnings multiple of 16.6 at the end of last year.”

Not sure if the P(rice) has fully discounted expected E(arnings). You can see from this intraday chart of the S&P futures that price has been coiling tighter and tighter these last couple of weeks. I can assure you that every trader in every time zone is waiting to see how it resolves before pressing on the gas.