Additionally, other market observers are bearish on the S&P 500 due to its lofty valuations.

“The S&P is trading about 17.7 times earnings, that’s about a turn and a half richer than it has historically, about 16.2 times,” options trader Mike Khouw said in the article.

SPDR S&P 500 ETF

Source: Yahoo! Finance

For more information on the S&P 500 index, visit our S&P 500 category.

Max Chen contributed to this article.

Full disclosure: Tom Lydon’s clients own shares of SPY.

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