Stocks are trimming some gains but still solidly higher Tuesday.
“Short term the sell off could be exhausted and a minor rebound over the next couple of days should be expected,” Saxo Bank technical analyst Kim Cramer Larsson said.
“However, the trend is down. No divergence on RSI indicates we are still to see lower levels towards the end of June,” he said. “A rebound will likely be short lived to resistance at 3,838 where selling pressure is likely to return. If S&P 500 closes above 3,838 it will try to close the gap up to 3,900. If it fails, it is a strong sign of weakness.”
All 11 S&P sectors are higher, led by Energy, Consumer Discretionary and Info Tech. Utilities is the weakest. Among the megacaps, Tesla is up 10%, but Meta is now in the red.
The 10-year Treasury yield is up 6 basis points to 3.30% and the 2-year is up 4 basis points to 3.20%.
May existing home sales fell a little less than expected to 5.41M. It’s the fourth-straight month of declines.
“The market is adjusting, rapidly and painfully, to the surge in mortgage rates, which has pushed up the monthly payment on a median home by more than 50% since last August,” Pantheon Macro said. “Inventory is now rising rapidly, albeit from a very low base.”
Among active issues, DaVita is the biggest S&P decliner after a Supreme Court decision on dialysis coverage.