This is a huge warning for stock

Wise men say only fools rush in, but retail investors can't help falling in love with equities.

According to research firm Trim Tabs, July was a record month for equity mutual funds and ETFs. They saw $40.3 billion in inflows. That's nearly double what it was back in June, when equity mutual funds and ETfs saw $20.8 billion in inflows. A large part of that money seems to come from bond mutual funds and ETFs; both those investment types saw a total of $90.2 billion in outflows over the course of June and July.

(Read in detail: US equity funds see highest-ever inflows in July)

Sure, a majority of the cash from the bond outflows went to cash, but should the record equity inflows worry investors?

"From a long-term perspective, you should have an investment plan and stick to that plan," says Talking Numbers contributor Enis Taner, Global Macro Editor at

Still, that doesn't mean Taner is entirely comfortable with stocks at these levels. "For my own portfolio, I actually bought some SPY (SPDR S&P 500 ETF) protection today against the potential decline in the second half of the year."

(Read: Dow, S&P 500 pull back from record highs; Apple ends higher)

But what's the technicians take? Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson, looks at the S&P 500's charts to see if they match up with Taner's assessment.

To see the fundamental reasons why Taner bought puts against the S&P 500 ETF, what the charts say, and how trading volume plays into this, watch the video above.

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