Here’s what caught my eye Tuesday morning: Trader

The potential for higher rates is causing agita for the market, and certain sectors in particular look vulnerable, according to technically minded trader Todd Gordon.

Gordon, founder of TradingAnalysis.com, noticed shortly after the market open that long-term Treasury bonds, as tracked by ETF "TLT," were substantially lower Tuesday morning while stocks were only slightly higher.

"We're seeing a bigger move in bonds in terms of percent change than in the S&P," Gordon said Tuesday. "So what that's saying is that the S&P's starting to hesitate here in the face of possible increasing interest rates."

The question now, Gordon continued in a video for CNBC's "Trading Nation," is: "Can the S&P maintain this bid?"

The perceived odds for a Federal Reserve rate hike in June or July have risen recently, thanks to the latest central bank meeting minutes and to comments Friday from Fed Chair Janet Yellen.

In the face of a potential hike, some sectors look particularly vulnerable, according to Gordon. Two that come to mind are real estate and consumer staples, given the high yields of many of those stocks.

"it's starting to pressure these dividend-paying sectors," Gordon said. "We need to keep an eye on this development."

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Brian Sullivan

Brian Sullivan is co-anchor of CNBC's "Power Lunch" (M-F,1PM-3PM ET), one of the network's longest running programs, as well as the host of the daily investing program "Trading Nation." He is also a frequent guest on MSNBC's "Morning Joe" and other NBC properties.

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