With the Standard & Poor's 500 moving higher each of the last four weeks and 17 of the last 22 trading days, the index just keeps setting record highs.

Do you realize that since the S&P 500 hit its low in November the index has gained over 24 percent? We are talking about a six-month period where the economy has limped along, a tax hike has gone into effect and our country is still dealing with major budget issues.

As the market has moved higher, investor sentiment has grown more and more bullish, which isn't surprising.

The Investors Intelligence report from last week showed a bullish percentage of 54.2 percent. That is within a chip shot of the two-year high of 54.8 percent.

With the bearish percentage coming in at 19.8 percent, the ratio of bulls to bears jumped to 2.737, which is the highest ratio in the last two years.

The Investors Intelligence ratio isn't the only indicator hitting extreme levels. The 21-day moving average on the CBOE Equity Put/Call Ratio dropped to 0.59, the lowest it has been since Feb. 9, 2012.

I have never been one to try and pick the exact top or the exact bottom of a market, but I do believe in making adjustments to my asset allocation when I see a correction looming.

Right now the sentiment is too bullish and the market is too overbought for me not to lower my equity allocation.