JPMorgan traders are getting worried and have turned cautious on the market. Here's why

JPMorgan's traders are getting nervous about the state of the current stock market. Traders at the bank said Monday that they've turned "tactically cautious" on stocks, until volatility in the bond market and selling in technology stocks subside. Though they remain confident in the underlying fundamentals of the market, they said they expect choppier action over the near term. "The market setup points to an imminent pullback," read a note from the firm's trading desk on Monday. "Stocks may take a couple weeks to find their footing," after Friday's debacle, when the S & P 500 sank more than 2.6%. Recent trading sessions have been especially volatile. Stocks rebounded Monday, after a violent chip selloff Friday drove the Nasdaq Composite down 4% to its worst day in more than a year. Traders bought the dip Monday, with shares of Micron Technology , as an example, climbing 9%. The JPMorgan trading desk expects that the selling in tech could continue, especially ahead of this week's SpaceX IPO, which could drive investors to take profits in highflying sectors such as semiconductors in order to buy the rocket and satellite maker. But there may not be enough support from other sectors to lift the entire market, in that scenario. On Friday, for example, the major market averages all suffered severe pullbacks, even though roughly half of the S & P 500 sectors were actually positive. Bond concern The bond market is another area of concern. …