Time to take some profits again!!

The stock market has had a nice run up since the end of November, reaching levels not seen since the summer of 2008, months before the start of the financial crisis. However, the long awaited stock market correction may be coming. While the longer term outlook is still positive, with a slowly recovering economy, an accomodative fed and strong corporate profits, on a technical basis the market my have run ahead of itself. Most technical indicators which had been in overbought territory for several weeks now appear to be turning down, pointing to a market decline. Look for a pullback to what is a fairly strong support level at the 1228 level.