Why Stock Market Is ‘Going to Hit a Brick Wall’

If mom-and-pop investors are always the last ones to the stock party, then it might be time to call a cab.

Market behavior in recent weeks suggest that after years of running from equities, the retail crowd is coming back in a big way.

Money flowed into stock-based mutual funds last week at a pace not seen in more than four years, and sentiment surveys and volatility measures show there is almost no fear in the market. (Read More: Money Pours Back Into Stocks)

Such periods in the past often have preceded ugly times in the market.

(Read MoreWhat Happened to the Wall of Worry?)

“All the ducks are starting to line up,” said Robert Sneddon, president at CastleMoore, an Ontario-based global asset allocation firm. “But we’re inching along and probably a month away, maybe three weeks (from a market top). You’ve got several things lining up, pointing us in that direction.”

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