Valuation Still A Problem

In spite of the decline in equity prices last week, it was still not enough to move my valuation indicator from a negative position.  Earnings estimates remain in an uptrend so a hedged position seems to be the best way to handle the risk of high stock prices.  Sentiment measures are very mixed, with some indicators bullish and others bearish but the net result is just a neutral reading.  All other things being equal, it would take an additional decline in stock prices of 2-3% before my model would move to a modest net long stock position.