Shiller PE Ratio is above 26.00, which is near 2008 sub-prime bubble levels of around 27.
Its worth mentioning that the historical Median of the ratio is: 15.93
Min: 4.78 ( Dec 1920)
Max: 44 .20 ( Dec 1999) Dotcom bubble
That indicates that stocks are extremely vulnerable(expensive), and a continued rise in yields amid FEd withdrawal of liquidity will pull the net below markets, and probably trigger strong pressures on stocks.
Market in a very dangerous position, as complacency at extreme levels, which is clear on the index VIX , which stands at historical lows near 10. Meantime stocks are on long term overbought territory as indicated by the stocks above 200-days shown on the below indicator.
Margin debt at historical highs, but started finally to retreat, indicating leveraged positions being closed. That also indicates a very vulnerable market, as if these positions start to unwind(forced liquidation) an accelerated sell-off will be the result.
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"It’s important to note at the outset that the Shiller CAPE isn’t the only price-to-earnings (P/E) metric that is currently elevated. The good-old-fashioned trailing twelve month (TTM) P/E ratio is also elevated. "
"Nobel laureate Robert Shiller is famous for the cyclically adjusted price earnings ratio (Cape), which he used to predict the dotcom bubble. Alain Bokobza, of Société Générale, argues to the FT's John Authers that it now needs adjustment for tax changes."