Thomson Reuters SPX 12 month forward P/E dropped a bit while the the index rallied. To smooth out the noise in this indicator I have been using a 10MA, which has actually been under 17 since the election despite higher prices. This means earnings estimates are increasing, and the 10MA on that number has risen from about 127 to above 131.

The 10MA of 18x-20x valuation target are up to 2360-2622, or 3.6% to 15.2% upside from current price levels. These will continue to change as earnings and the 10 week moving average also change.

Citigroup Economic Surprise Index is maintaining in positive territory.

My interpretation is that these are moderate positives for the market. Higher valuations sure, but not yet at wild extremes. Economic reports coming in on the positive surprise of things is positive after 18 months below zero last year.