There are quite a few market valuations metrics that points to the market of being overvalued.
The Normal PE Gives us about 25% overvalued:
Current S&P 500 PE Ratio: 19.82 +0.01 (0.05%)
4:05 pm EST, Tue Jan 19
Mean: 15.57
Median: 14.61
Min: 5.31 (Dec 1917)
Max: 123.73 (May 2009)
The Case Schiller PE about 45% overvalued:
http://www.multpl.com/shiller-pe/
Current Shiller PE Ratio: 23.83 +0.01 (0.05%)
4:05 pm EST, Tue Jan 19
Mean: 16.65
Median: 16.02
Min: 4.78 (Dec 1920)
Max: 44.19 (Dec 1999)
Warren Buffett Indicator: 18.8% Overvalued.
http://www.businessinsider.com/buffett-indicator-better-but-…
So all the valuation metrics are showing that the stock market is overvalued.
What does this mean?
It means that a major correction may occur at any time. Mr. Market tends to overshoot so the correction may be much more than 20% and maybe as much as 540%. When this happens momentum stock got to be hit badly.
My take: Unless you are in a deeply valued stock this the time to get out of the market and wait in cash (IMHO).
This is not technical analysis this is from perspective of market valuation only.