Quick turnaround
A 10 point gain in the S&P 500 has turned into a 10 point loss.
One of the reasons is talk of month-end rebalancing from Goldman Sachs and Credit Suisse. They said US stocks may face pressure from month-end flows as pension funds need to sell USD 12 billion worth of equities and buy roughly USD 24 billion worth of fixed income securities to revert to prior asset allocation.
Along with today's reversal in stocks, the earlier rise in Treasury yields has been pared.
Given how aggressive dip buyers have been for the past few months, we might not be talking about losses for long.
