Several technical signals suggest that the stock market is nearing oversold territory, but that doesn't mean Wall Street is poised for a true rebound, according to Canaccord Genuity strategist Tony Dwyer.
The Nasdaq Composite , S & P 500 and Dow Jones Industrial Average all closed below their 50-day moving average Tuesday.
Within the S & P 500, more than 85% of stocks are below their own 50-day moving average, Dwyer said in a note to clients Wednesday.
But those technical signals aren't enough to confidently buy the dip, Dwyer said.
The recent rise in bond yields will put a cap on any short-term rebound, according to the strategist.
Persons:
Canaccord, Tony Dwyer, Dwyer, — CNBC's Michael Bloom
Organizations:
Nasdaq, Dow Jones Industrial, U.S . Treasury, Treasury
Locations:
U.S