The market is certainly pretty extended when looking at a six-month or one-year price chart, but a look at a longer term price chart of the S&P 500 paints a pretty different picture. As shown below, the S&P 500 is currently up 107% from its low in March 2009. But the index is still within its decade long sideways trading range, and it's got 11.6% to go before reaching the top of this trading range, which is at 1,565. The index is currently trading at just over 1,400.
The Nasdaq Composite is up 143% from its March 2009 low, and it just experienced a very bullish breakout above its 2007 and 2011 highs. The Nasdaq still needs to gain 64% to get back to its Internet Bubble high of 5,048. When the Nasdaq first hit 3,000 back in late 1999, it had a trailing 12-month P/E ratio of 73. The index's current P/E stands at 25.5.
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