SCHD Rally Stalls Amid Bearish Technical Signals

The Schwab US Dividend Equity ETF (SCHD) has been experiencing a stalled rally over the past few weeks, despite its recent surge in popularity and record-breaking inflows.

The ETF peaked at $35.33 in August and retreated to $34.55, forming several bearish patterns that may lead to a brief pullback in the near term.

The Relative Strength Index (RSI) has dropped from an overbought level of 74 to 57 and is still pointing downwards, indicating a potential bearish reversal sign.

In contrast, the fund's constituents have been performing well this year, with companies like Merck & Co, Amgen, and Abbott Labs driving growth. Investors have poured $20 billion into SCHD this year, making it the biggest dividend fund in the world, surpassing the Vanguard Dividend Appreciation (VIG) fund.