With the markets making quick work of Dow 25,000, here's the crucial issue: With so much good news now built into the market, is there room for higher prices?

Can you smell it? It's a slight whiff of euphoria around the stock market rally, the first time I have smelled it in a long time.

Oh sure, the market has been richly valued for a long time, but that's different than euphoria. A lot of people suddenly seem to believe that things are going to get a lot better in 2018.

Maybe, but remember one of the best things the market has had going for it for the past seven or eight years is how hated the rally has been.

Now people are starting to like the rally. A lot. Makes me a little nervous.

Here's something else that makes me nervous. The bar is now very high on the two most important components for stock valuations: economic data and earnings.