Bearish scenario in stock market GettyAfter the S&P 500 reached a closing high of 3,581 on September 2 the Index has fallen 344 points to 3,237 or 9.6% in three weeks. Since the late March lows the S&P 500 had increased 60% to September 2, the Dow was up 57% and the Nasdaq skyrocketed 76% in just over five months. S&P 500 momentum is to the downsideJim Cramer on CNBC sometimes highlights a chart from the Fibonacci Queen, Carolyn Boroden. S&P 500 chart StockCharts.comValuations are extendedFrom the time the stock markets hit their March lows, the forward 12-month PE ratio for the S&P 500 has risen from 13x to 22x. S&P 500 forward 12-month P/E ratio FactSetAt the beginning of the year the S&P 500 companies were projected to earn almost $200 in 2021 ($196.57 to be exact) by FactSet.

Source: Forbes September 24, 2020 12:33 UTC