Another important part this bull market is missing is the retail stock market investor. Hey, this rally has no legs at all!

We have insisted - with no proof, up until now - that the mom and pop investor is no longer counting on the stock market for his retirement. He's seen what can happen. At the low in March, adjusted for inflation, he was back to where he was 40 years ago. That is, in real terms, he had not made a dime from the stock market (aside from dividends) during his entire adult lifetime.

We guessed that he was not buying stocks.

Now, here's the evidence: according to TrimTabs, only $2.5 billion has gone into equity mutual funds in the last six months. Bond funds have attracted 13 times as much money as equity funds, says a Morningstar report.

"US retail investors...have watched this rally from the sidelines," the FT concludes.

Wait a minute. Someone is pushing up stock prices. If not the retail trade, who? We don't know. Maybe hedge funds. Maybe institutional speculators. The pros have a different outlook. If this rally turns out to be real, and they miss it, their jobs and reputations are in danger. If it turns out to be phony, on the other hand, they risk clients' money. On balance...they are better off getting in than staying out.

But just as the pros jump like lemmings into equities...they could all scramble out fast. Give them a fright...and this rally is over.

Where might the fright come from? We can think of several possibilities. One is the housing sector. If foreclosures begin to increase...and prices fall...even the pros may put two and two together.

Likewise, a shocking unemployment number could cause them to connect the dots.

Then, look out below...