Yes and no. At this point in the season the algorithm only uses this seasons results. Early in the season some preseason ratings, presumably based on prior year results with some adjustments are used but after a number of weeks they're phased out entirely and only current year results are used.
There is no conference only option, because the point is to build something to compare teams who don't play each other. That is very hard to do without common opponents so eliminating nonconference games would weaken the usefulness of the exercise considerably.