Stocks Pull Back Sharply, Raising Concerns of Deeper Correction Ahead
• U.S. stocks pulled back sharply on Wednesday, raising questions if it was a one-off or the start of a deeper correction • Some tech stocks look extremely extended after a big rally, presenting risk of more downside • S&P 500 faces technical support at 4,675 and 4,600 if selloff continues • Breadth and momentum were extremely overbought before pullback, but no major warning signals yet • In the near-term a pullback seems likely, but longer-term the bull market could still have room to run