The Federal Reserve does the stock market "no favors" by keeping interest rates low, according to one economist who says the market is on the brink of a bubble burst. Charles Dumas, chief economist at London-based Lombard Street Research, wrote in a recent note that the low cost of borrowing has made corporate buybacks a more attractive, and feasible, option than in past years.

Dumas says buybacks at these rates have led to to a stock market that appears to be reaching artificially high levels. According to Dumas, corporate buybacks have become the "chief source of buying in the market," not outside investment, and 8 percent growth in nonfinancial bank debt is fast enough "to sound the alarm.

Buybacks fell by 21 percent in the second quarter, and the decline indicates that companies have not increased "planned buybacks or rearranged expenditures to support their shares" through the end of the fiscal period.

Discretionary buybacks, used to reduce share count and boost earnings per share, are "unknown," according to Silverblatt. The Fed will inevitably raise interest rates "pretty soon," Dumas said, and he remains a long-term bull on U. Boris Schlossberg of BK Asset Management breaks down three key items he is watching for on Wednesday.

Interest in chipmaker Nvidia has exploded, and one technician says the stock has room to run. Boris Schlossberg of BK Asset Management and Craig Johnson of Piper Jaffray debate the next move for stocks, in this discussion with Eric Chemi. Are more gains in store for biotech stocks? Boris Schlossberg of BK Asset Management and Craig Johnson of Piper Jaffray discuss with Eric Chemi.

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