Stock-market bull warns Fed pause could trigger classic ‘sell-the-news’ pullback

The U.S. stock-market rally is on an “unsustainable” near-term trajectory, leaving it vulnerable to a pullback Wednesday if the Federal Reserve, as expected, holds interest rates steady, a top Wall Street technician warned.

“Markets are on a torrid pace this week in anticipation of a Fed pause today. We suspect it to be a classic sell the news event, as the trajectory has become near‐term unsustainable,” said Jeff deGraaf, chairman and head of technical research at Renaissance Macro Research, in a Wednesday morning note.