But that assumes the "E" in the p/e stays the same. In a recesssion, the "E" always goes down. Same thing happened in 2008.
This market hasn't been based on fundamentals in a very long time. We had panic, liquidation selling in 2008, but then we had the Fed-driven buying during the QE periods. From the looks of it, we have more liquidation of assets going on now.