The S&P 500 forward P/E has hopped to 16.9 from 16.4 on Nov. 8 while the P/E for the small-cap S&P 600 took off to 19.9 from 17.4 during a similar period, the highest of the current bull market.

These levels are high and probably cannot sustain any further market overheated situation unless we can see the solid proof from the companies that can continue to deliver blowout earnings.

Stocks are ready for a breather.  The market is overbought and it will either go sideways or lower.

The correction may not be immediate and we may still have a Santa Claus rally because the VIX, fear index, is not yet low enough to trigger any massively frantic selling.