Utilities ETFs were also outperforming on Wednesday.
“A clue that equities may soon drop back is today’s performance of the most defensive industry. SPDR Utilities is outperforming, up 1% at the time of writing, whereas the S&P 500 is flat,” said Tarquin Coe, technical analyst at Investors Intelligence. “The ratio of the S&P 500 versus the XLU is attempting to reassert its nine month uptrend, a trend which is more oversold than overbought. That rising chart reflects a defensive rotation. The defensive rotation evident today is another bearish clue.”
Tisha Guerrero contributed to this article.