Every week, I check the 12 month forward P/E of SPX as reported by Thomson Reuters. Dividing by price gives the implied earnings estimate. Multiplying by P/E ratios gives theoretical valuation support and resistance levels.

The 10 period moving average of earnings estimates continues to flatten after climbing rapidly last year.

Multiplying this by 18x gives theoretically SPX valuation resistance - same slope as above.

And here's how this idea played out with 18 P/E (10 period MA of that to be precise) in blue and SPX price in orange. Note: not a hindsight exercise. I pointed to 18x target since summer 2016, and as the market ran into this level expected some professional selling.

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Citigroup Economic Surprise Index took a sharp dive back to the neutral line. There is no positive spin on this chart.

Valuation score - 0
Fundamentals - 0

I does not appear that the market "should" move anywhere - EU politics and USA taxes seem to be the immediate drivers.