Trader warns: If this happens, stocks will pull back

Heading into second-quarter earnings, the technology sector seems to be leading the market, and pressure to continue the rally means that stocks could be in a precarious position, according to Todd Gordon of

This is a major change from the last year of trading, Gordon told CNBC's "Trading Nation" on Monday.

"We've seen sectors like energy and industrials and materials leading us to the top side. Now what we're seeing is technology starting to do the heavy lifting and push us higher," Gordon said. He added that this is a "critical juncture" as major tech giants are expected to report earnings this week.

Apple and Twitter are expected to report earnings after the bell on Tuesday; Facebook reports on Wednesday, and Alphabet and Amazon report on Thursday.

As the energy sector falls behind, with crude hitting its lowest level since April, Gordon feels that there's more pressure on tech to lead the market. "I'm worried that we're asking too much of tech," he said. "So if technology were to miss expectations, the market could be in for a pullback."


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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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