Sector Spotlight: Market Erases Gains Of Last Week

Market Recap For July 18th, 2022

This week was expected to start off with a continuation of Friday’s rally, and markets didn’t disappoint. Stocks gapped higher to start Monday’s trading.

However, the rally faded mid-day and all major indices fell into the red. The decline may not be over just yet, based on yesterday’s close.

Yesterday’s Sector Performance

Oil’s strong move higher catapulted Energy to the top of the leaderboard.

Healthcare stocks struggled all day long.

Five-Day Sector Performance

Discretionary stocks are the only ones firmly in the green over the past week.

Healthcare is at the bottom of the week, thanks in part to yesterday’s performance.

ETF Trade Watch

Healthcare Select Sector SPDR (XLV)

Healthcare stocks looked very constructive to end last week, but not quite so much to start this one. The XLV could be in some trouble if Monday has been any indication of how the rest of the week will turn out. However, XLV remains range bound and has not broken lower of that price range, if today was just big players taking profit after last week’s rally then XLV could bounce.

Consumer Discretionary Select Sector SPDR (XLY)

The one sector holding things together over the past week has been Discretionary, so bullish traders may want to take a look at the XLY. Because consumer spending remains high despite the increase in CPI, investors have found some value in bottom feeding on stocks that would reflect this consistent spending. XLY is hanging around the upper level of its recent consolidation zone, a surge through this upper bound could signal a run higher.