Margin debt, also known as “borrowing to buy stocks and other securities” has increased and gotten ahead of the S&P 500.
It normally follows the index in both directions, up and down. When stocks on margin debt get ahead of the market index, any significant drop can have a cascading effect because stocks and other securities tend to get sold to cover any pending margin calls.
There are stealth technicians and blogs calling for an expectation of a 5-7% drop beginning as early as tomorrow.
As we know, the issue is that when too many people expect something, it rarely happens.