NEW YORK (TheStreet) --Real Estate will become the S&P 500's 11th sector next month. As a result, the focus of Tuesday afternoon's "Trading Nation" segment on CNBC was real estate stocks.

Crossing Wall Street editor Eddy Elfenbein and Oppenheimer's head of technical analysis Ari Wald joined CNBC anchor Brian Sullivan to discuss real estate.

"Real estate has been a huge winner over the last seven and half years, and the total return is up something like 400%. But, now it's facing some pretty stretched valuations and more importantly, it's probably fighting an unfriendly reserve," Elfenbein explained.

Moreover, he believes the time has come to move away from real estate stocks.

Recommending a market weight position, Wald described the reasoning behind the call using the Vanguard REIT Index Fund (VNQ) chart.

"[The chart] looks pretty good, it's correcting into support that starts at $87, extends down to $84, so we're getting to pre-Brexit levels. With a rising 200-day moving average we think this is where the ETF finds a floor," Wald said.

Oppenheimer's market weight recommendation is based on the thinking that the group will be handcuffed by ebbs and flows, and interest rates.

"There's a very tight negative correlation. So in the near term, if rates back up a little which we think they can, we think this is going to underperform," Wald noted.

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