a must read on us market a fall is near, page-14

Agree with your sentiment; doesn't have to be overvalued to crash. Which market was PE 10? Google tells me S&P500 had a PE of 19, having gone from 10 within a year, at the time of the crash. Anyway, as far as market corrections go (and chart patterns?), it seems like 1987 was somewhat of anomaly with many explanations as to why, all lacking "that's it!". Doesn't mean it can't happen twice but the probability is low in my opinion. And we trade probabilities, don't we?

Short sharp correction? Yes, but a continued bull run/walk/crawl afterwards is my bet. Maybe not on every market but Europe (UK aside) seems to be that inclined.