The Stock Market will fall Another 40%!

Several months ago I posted a chart that showed after every huge run up in the stock market where the major indices became overvalued with a p/e ratio above 25 or so the stock market crashed back down to a p/e ratio of almost six, which resulted in huge declines in the stocks.The main three standout points are the great depression/ the late 60's and the dot com crash (although the stock market did not fall enough in 2000 and has not bottomed).
Following these big dips was an opportunity to then buy into the stock market. While the s&p has fallen almost 40% it still at a p/e ratio of 11.5!! Doesn't this mean stocks will have to fall much further in upwards of another 40% before we get to that historical bottom of 6?

Does anyone see a fault in this assesment?

http://www.investopedia.com/articles/technical/04/020404.asp
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?s...

http://www.comstockfunds.com/files/NLPP00000%5C026.pdf