Keep in mind that as stocks keep rallying here, valuations are rallying as well. The 12-month trailing P/E ratio for the S&P 500 just crossed above 22 today. That’s 5.5 points above the index’s average P/E of 16.56 going back to 1954. Below is a chart showing the S&P’s trailing 12-month P/E over this 60+ year time frame. We’ve provided dates for previous highs that were reached.