The pullback in stocks this week has S&P 500 exchange traded funds testing a key technical indicator as investors look for resolution on the U.S. debt limit.
SPDR S&P 500 ETF (NYSEArca: SPY) and iShares S&P 500 (NYSEArca: IVV) were down 1.4% in afternoon trading Wednesday. The ETFs were also testing their 50-day exponential moving average.
“The meandering continues as the SPDR S&P 500 ETF tumbles back towards the middle of its multi-month range,” said the Coe Report, a newsletter from Investors Intelligence.
Stocks were lower Wednesday after the Commerce Department reported durable goods orders fell an unexpected 2.1% in June
Investors are growing increasingly worried the U.S. debt limit won’t be raised by the Aug. 2 deadline, which may trigger a default.