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ETF Sector Spotlight For 05/18/2022


Market Recap For May 18th, 2022

So much for higher prices. In what has been a common occurrence over the past 2 months, rallies end quickly and are commonly reversed.

Unfortunately, so are the selloffs. Yesterday left a definitively bearish tone, so expectations should be for new correction lows. But, who knows?

Yesterday’s Sector Performance

There was no sector to hide in on Wednesday, but Utilities held up best.

Consumer Staples and Discretionary were hit the hardest, which is somewhat uncommon.

Five-Day Sector Performance

Energy still leads the weekly chart, but that is likely to change soon.

Staples are still at the bottom of the trading week.

ETF Trade Watch

Consumer Discretionary Select Sector SPDR (XLY)

Consumer Staples Select Sector SPDR (XLP)

It’s not very often traders see Discretionary and Staples get hit together, and it’s very rare to see Staples take the hits they did yesterday, in big part due to Target.

If markets take another big fall, those two sectors could get hit again, and that means bearish plays could be considered for the XLY and XLP.

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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