Does anyone else follow the Buffett Indicator? It is a measure of the ratio of the total price of the stock market relative to the US gross national product. In theory, the higher the ratio the more overbought the market is, and the lower the ratio the more oversold it is.
Right now this measure is around 146, and historically it's been tough for this measure to exceed the 146-148 range. If you follow that indicator, we would seem to be at a market peak. To lower the ratio the total stock market price needs to drop, or GDP needs to increase. I've been looking at this for about two years and expecting a market pullback that has not yet happened.
Getting this number back to 100 would put the DJIA down around 19,000, if dow stocks sank along with the larger market. There is nothing magical about 100, but there have been times when this number was above 100 and under 100, so it's possible. After the dot-com recession, this metric bottomed out in the low 70's, and during the Great Recession the number fell as low as 57.