SP500 061123 4h ChartSP500
pulls back as traders take some profits off the table after the strong rally. There are no important economic reports scheduled to be released in the U.S. today, and it’s not surprising to see that traders did not find sufficient catalysts to push SP500 to new highs. In addition, Treasury yields have started to rebound, which is bearish for stocks. Real Estate stocks have found themselves under strong pressure due to rising Treasury yields. Healthcare and Consumer Defensive segments are moving higher today as traders shift their funds to defensive sectors.
RSI remains in the overbought territory, so the risks of a pullback are rising. In case SP500 settles below the 4350 level, it will move towards the nearest support, which is located in the 4260 – 4280 range.