In today's Traders Exclusive Update, Tim Biggam reviews the action in equity markets, as the indexes have started to level off after a nice run, with the S&P basing out around the 2,045 level. Prices dipped this morning on news of weakness out of Asia, but have since recovered some. The US is looking comparatively good relative to the rest of the world, as consumer confidence is starting to gain some traction. US large-cap stocks seem to be the most preferred asset class here as high yield credit is getting hit and small cap equities are negative for the year. Biggam is cautiously bearish at these levels, and is selling out of the money call spreads in anticipation of a lack of further upside. The S&P is trading at 15x 2016 EPS, which is historically high, and price to sales ratios are near 1.8 which is almost the highest they have ever been. Combining valuation with the low level of the VIX seems to suggest put protection makes sense.