Weekly Market Indicators for 09.28.14

Credit Market Indicators:
Treasury Yield Curve
Treasury prices increased last week and yields “tightened-in” about 5 basis points along the intermediate portion of the curve. The benchmark 10-year note ended the week at a 2.54% level.

Current Shiller CAPE Ratio:
The CAPE ratio remains significantly higher than its historic mean of 16.6 with a Shiller PE Ratio of 26.2 at the close of market Friday. While not useful as a timing indicator, elevated CAPE levels have correlated strongly with less than historic levels of annualized equity returns on a forward looking basis.

Volatility Indicators:
The VIX ended last week at a 14.85 level, up 21.62% from the prior week, posting the biggest weekly gain since the end of July.

Momentum Indicators: 
Equities of all types were down last week, but near term momentum continues to strongly favor domestic large cap stocks over all other equity categories.*