Sign of the times – the S&P500 is 30% above its 200 day moving average. This has never happened, ever before in the entire history of the the US stock market. The move signifies the effect US money printing is having on the stock market.
The stock market is in effect experiencing a bubble. In economics a bubble always brings grief when it pops. All bubbles pop. Money printing brings rising prices but does not promote more economic activity, more employment or increases in GDP. Despite the money printing of the last few years US economic growth remains stagnant.
The very minimum we can expect the S&P500 to retrace to the moving average. That would mean a move to circa 1200.