U.S. equities have vigorously rallied for the past six weeks to gain +20%, bringing the S&P 500 just above 1200, as Q1 2010 earnings hit the tape. In short, the charts are begging for a pullback, but earnings and economic indicators are giving no reason to sell. Most analysts agree that the good news is mostly baked in stocks, but sellers have left the building and buyers keep coming out of the woodwork.

Here we’ll focus on a few indicators related to the S&P 500, and tell investors why they should be taking profits at these levels.

The January 18 – 22 business week will begin one day late, due to Martin Luther King Jr holiday, leaving only Tuesday to Friday for market action to be staged. The most notable economic data releases will be the Housing Market Index (HMI) and Housing Starts numbers; while Treasury International Capital data, the Producer's Price
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The manner in which U.S. equity indexes are ending the week today is extremely comforting. We are seeing the Dow Jones Industrial Average (DJIA) and the S&P 500 end the day with modest gains, completing a four day rally with positie gains every day. The close wasn't so high that it would tempt short positions
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