Stock up, bullishness decrease. Why?

Flip flopping news on media are giving us very confusing signals. Bailouts, not so bad economic data, etc. The most important of all, though many markets have fallen a lot particularly in Europe, Hong Kong, Japan, etc. There are also markets that holding up very well like the US, Malaysia, etc.........

I found a very interesting chart recently. S&P 500 index up but strategist's stock allocation down. If the market direction and bullishness are going up in the same direction then it is something to be worried. If we were to flip the argument, is this telling us everything is okay and even downside risk is relatively minor?

At this point of time, I believe most people are still in the wait and see mode. Undecided - nobody has strong enough motivation to sell or buy. 

Bottomline: strongest market  leaders will have to correct at least 10-15% from the recent highs before picking up stocks, value stocks included.