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ETF Sector Spotlight For 05/11/2022


Market Recap For May 11th, 2022

Whatever slight signs of bullishness that had developed on Tuesday were quickly squashed on Wednesday. Most of the damage hit the Nasdaq, again.

Yesterday’s close was clearly a bearish one. Traders would be advised to avoid holding any long positions too long until a clear reversal occurs.

Yesterday’s Sector Performance

Energy and Utilities actually had positive days.

Technology and Discretionary were the clear laggards.

Five-Day Sector Performance

Utilities are still sitting atop the weekly chart, albeit still firmly in the red.

Discretionary has had an awful trading week.

ETF Trade Watch

Technology Select Sector SPDR (XLK)

Consumer Discretionary Select Sector SPDR (XLY)

The past 6-7 weeks have been a persistent “sell the rally” environment, and there currently doesn’t appear to be any signs of that changing,

Until it does, the two sectors taking the biggest hits are Tech and Discretionary, which provides bearish opportunities on the XLK and XLY.

Good luck!

Christian Tharp

I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group. My Chartered Market Technician (CMT) designation substantiates me as an expert in areas such as the technical analysis of stock trends, market indicators, cycles, price patterns, Elliot Wave principles, Candlestick charting, analyzing financial trends and behaviors, portfolio strategies, and forecasting future price movements. With my straightforward approach to simple, systematic trading, students learn how to strategically assess buy signals and market entry timing, establishment and management of stop losses, and how to employ a simple and disciplined trading approach that creates profits.

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