All of these issues, the negative divergences among the major averages, and the overhead risky levels from my proprietary analytics justify my investment advice to book profits, take some money off the table and have an asset allocation in the stock market down to at least 50%.
I have made several "market-timing" calls at market extremes since this century began. Back in March 2000, I recommended that investors reduce exposure to the Nasdaq by 50% saying that gains above 5000 would not be sustained. Then in the second half of 2002 my call was to re-invest in the stock market.
In the second half of 2007 my advice was to book profits and raise cash just as I do in today's analysis. As March 2009 began I made the call that stocks were ripe for a 40% to 50% upside move.