Morningstar publishes an interesting chart on market valuation. Every day they calculate what they consider to be the "fair" price of every publicly-traded stock in the U.S. and compare that to each stock's actual market price. If the market price is below the fair price, the stock is undervalued. Conversely, if the market price is above the fair price, the stock is overvalued. Morningstar aggregates these individual valuation measures into an index that measures the market's overall relative value.
Morningstar currently sees stocks as undervalued (see the chart above.) While this indicator is not meant to be a trading signal, it is one more piece of evidence supporting our decision to hold steady despite the market's frustrating ambivalence.
You can access Morningstar's valuation index directly at: http://www.morningstar.com/cover/pfvgraph.html