The major US equity indices are down today but are still relatively flat on the year

The major US equity indices are down today but are still relatively flat on the year. The two big questions investors are contending with: are valuations too high and will the Fed accelerate the pace of its taper. As earnings start rolling in this week, the market's lofty valuations will be put to the test. In many cases, actual data won't support the high prices investors are paying for certain stocks. That's not to say there won't be upside surprises as well - but odds favor the downside given the current high valuation environment. On the other hand, the entire market could be set for a pullback if the Fed decides to speed up the pace of its stimulus reduction. Friday's disappointing jobs report makes this scenario less likely, but there's still plenty of economic news to come.