Week-end thinkering! Can we go higher?

Looking at the above chart, we can see that on a historical basis the market seems to be overextended, but the last time we moved by that much in such a period were crisis times... The last three years where we had these kind of moves were 2000, 1997 and 1990 (the last two are not shown on the above graph). Each time we were in the middle of a crisis: Tech bubble imploding, Russian/Asia/LTCM and recession in the US...

So yes we can go higher even if the market is overextended right now... Although the recent move maybe needs a small correction before going higher