Retail investors have suddenly got more cautious in using options and margins. That may spell trouble for tech, says JPMorgan.

JPMorgan says retail investors are becoming more cautious about leverage after the market's recent rally, a shift that could weigh on the tech sector where they have been heavily concentrated. The note points to a risk-off change in positioning rather than a fundamental earnings event. Impact is likely more notable for sentiment and sector flows than for the broader market.

Analysis

JPMorgan says retail investors are becoming more cautious about leverage after the market's recent rally, a shift that could weigh on the tech sector where they have been heavily concentrated. The note points to a risk-off change in positioning rather than a fundamental earnings event. Impact is likely more notable for sentiment and sector flows than for the broader market.