I'd say that P/Es will eventually bottom out at about an average...

I'd say that P/Es will eventually bottom out at about an average 5-7. However as we're not yet at the end of this bear market, an average of 10-12 might be acceptable to the market at this time.

Assuming the bottom is a year or two away (and incidentally then I'd expect a very slow increase as the market moves sideways, with ups and downs for many years), the market will do its thing, moving up and down in the meantime.

As the market undulates, although we should see a decline in PEs, it therefore won't be a straightline decline. So even if you consider them too high at the moment, that doesn't prevent the market moving up on a short term basis (within an overall downtrend).