Sector Spotlight: These ETFs Are Approaching Key Levels

Market Recap For July 9th, 2022

Friday’s market action was somewhat of a snoozer after the typical opening volatility. In the end, stocks ended up mostly flat.

The trajectory is still higher, but it is important to remember this is an ongoing bear market until further notice.

Yesterday’s Sector Performance

Healthcare was the only sector meaningfully in the green.

Materials underperformed the overall market.

Five-Day Sector Performance

The winner of the week was Consumer Discretionary.

Although it clawed back a little, at week’s end, Energy finished at the bottom.

ETF Trade Watch

Consumer Discretionary Select Sector SPDR (XLY)

If the market pushes higher to start off this week, Discretionary and the XLY could again find success this week. However, there could be some significant selling going into next after last week’s rally. Resistance level still looks to be the $147 mark, so if XLY cannot break through this level, watch to the downside.

Healthcare Select Sector SPDR (XLV)

Healthcare performed well on Friday, but the price action of the corresponding XLV finished with a somewhat bearish look. XlV seems to be approaching what could be seen as resistance at around $132. The sector has held up relatively well compared to other areas of the market during this cycle, however, there looks to be a possible “double top” scenario forming. If prices cannot exceed resistance and reject, the decline could be steep.