Since December, the percentage of advisors who described themselves as bullish rose above 60%, which Investors Intelligence considers “danger territory.” Meanwhile, the P/E ratio for the Russell 2000 index hit its highest level since the benchmark was created . Martin warned that the third signal emerged late July.

Nevertheless, Martin believes that the pullback this time around may be muted as the Federal Reserve will quickly “step in to provide extreme liquidity to blunt the decline.”

Another credible pullback play is the PowerShares S&P 500 Downside Hedged Portfolio (NYSEArca: PHDG). PHDG tries to generate a positive total return in both rising and falling markets. PHDG holds derivatives along with equities to achieve its target objective. The ETF is up 0.1% over the past month and has gained 2.3% year-to-date.

PHDG tracks the the S&P 500 Dynamic VEQTOR Index holds derivatives along with equities with the bulk of the ETF’s long equity exposure going to U.S. large-caps.

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Max Chen contributed to this article.