Could the Dow Jump Up Another 400 Points by Year-End?

Concerns that the stock market is overvalued continue to arise as the S&P 500 has increased by nearly 8% during the past 10 trading days. 

The market could remain overvalued for awhile, because of the "easy money" from the central banks, said Matthew Tuttle, the portfolio manager of Tuttle Tactical Management U.S. Core ETF (TUTT). The Fed is acting as a punch bowl for the market by keeping interest rates low.

While the market had regained its losses after the U.K. voted to leave the European Union, the long-term consequences of the decision will not be unknown for several years. Factors such as when the Federal Reserve decides to raise interest rates will also impact market returns.

"This will be determined by how Brexit plays out and if other countries leave the EU along with what the Fed does and when," he said. "If the Fed stays on the sidelines for awhile and there is no further fallout from Brexit, then this rally could have another year and another 400 points on the S&P 500 to go until it finally peters out."

Since the market is always overvalued in some areas and undervalued in other places, figuring out whether there is more upside or downside by utilizing the price-to-earnings ratio or P/E is difficult, said Uri Gruenbaum, CEO of TipRanks.com, a tech company based in Tel Aviv, Israel that ranks stock analysts based on their recommendations.

"It's more of a tumultuous trend than a valuation trend following Brexit and falling oil prices," he said. "Warren Buffett's indicator of market valuation is the market cap divided by GDP -- [which] now stands above 110%, higher than it was in 2008, but shy of 1999 levels."

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