Sector Spotlight: Stocks Continue To Rally
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Market Recap For July 19th, 2022
Turns out, Monday’s decline was but just a blip, and markets are back on track with the forecast to start the week: Higher.
In addition to notching a nice rally on Tuesday, major indices pushed through important resistance zones. Higher prices should still be coming.
Yesterday’s Sector Performance
Big days were had by most, but Services and Industrials performed best.
Utilities were the weakest, albeit still in the green.
Five-Day Sector Performance
Discretionary stocks are still on top over the past week.
Utilities are now the only sector in the red.
ETF Trade Watch
Communication Services Select Sector SPDR (XLC)
Consumer Discretionary Select Sector SPDR (XLY)
Markets seem to be set to take another leg higher, falling in line with our forecast for a shorter term rally. Bear markets often have bounces or periods of brief bullishness amid the streets running red. There is little idea if this is the market capitulating or if it is indeed just another bear market bounce, however, for now stocks look poised to end the week higher.
Assuming everything holds up as is, Discretionary and Services stocks look like top performers, and that favors the XLC and XLY. Both ETFs appear to be range bound, but trading at the upper end of that range, leading to the possibility of a sustained move higher. As earnings continue, investors will soon see what the market’s true intentions are.