The stock market is in "euphoria mode," with some sectors close to bubbles, says Tobias Levkovich, Citigroup's chief equity strategist.

He sees a 90 percent chance for stocks to end the year higher, but the market's move into euphoria late last year in Citi's "panic-euphoria" model, means there's a good chance for a correction, Levkovich tells CNBC.

Certain market sectors are almost in bubble land, he explains. "You worry about social media. You worry about biotech. You worry about some of these fuel-cells stocks where there is some speculative froth going on."

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Levkovich forecasts the Standard & Poor's 500 Index will end the year at 1,975. That would represent a 6 percent rise from Tuesday's close of 1,867.63.

Levkovich argues the present period differs from the stock market bubble of the late 1990s in that back then, stocks were moving far ahead of earnings. Since the 2008 financial crisis, corporate earnings have risen, but only recently have stocks caught up, he explains.

"You could end up with that late '90s parallel," he notes. "The question is do we have the broad-based speculative froth? And we don't. That's clearly not there."

Many market participants remain bullish on stocks. There's no need to take risk off, Sam Wardwell, investment strategist at Pioneer Investments, tells The Wall Street Journal.

"Do not get defensive now. The market is not imbalanced. As long as we don't have gunshots [in Ukraine], the market will be pretty calm."

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