If you run the correlations on the actual quarterly earnings numbers against the actual average price of the S&P 500 each quarter, the correlation is above 85. But if you use the growth rate (rate of change), the relationship doesn’t hold, as you have described.
If you run the correlations on the actual quarterly earnings numbers against the actual average price of the S&P 500 each quarter, the correlation is above 85. But if you use the growth rate (rate of change), the relationship doesn’t hold, as you have described.