Bearish trend signals stocks are vulnerable to a 10% to 15% correction

The market seems to be doing things that are more important than corrections.Julian Emanuel, BTIG, warns that when the S&P 500 and Nasdaq rise together, it can often be a sign of a 10% to 15% pullback."Whenever we've observed that, going back to 2018, we were essentially weeks from a correction," CNBC's "Trading Nation," said the firm's chief equity-derivatives strategist. "The most recent was last September. "We believe history could repeat itself."Emanuel says that the bearish trend in stocks has been evident for several months.He said, "You could trade back up to 4,000 [on S&P 500]" The index closed at 4,387.16 on Monday, down 0.18%. The S&P 500 has risen 17% so far in this year.Emanuel suggests that rising Covid-19 Delta variant fears during a seasonally hard period for stocks creates an even more perilous situation.He said, "Four to five weeks ago we weren't really concerned about the Delta variant." It's possible that the economic growth we anticipated might be a bit slower.Emanuel, a long term bull, views near-term troubles as healthy, since it would provide the market with a key refresh.Emanuel stated that "it was leadership that has been a little too concentrated."His concerns are mainly related to a few large-cap growth stocks and Big Tech stocks.Emanuel added that "At these valuations, and as high as these stocks have ran, they are in reality vulnerable in our opinion, especially given the potential for China as a wildcard going ahead,"