Sector Spotlight: Just How Far Will The Bulls Run?

Market Recap For July 21st, 2022

This week’s forecasting has been simple and straightforward in that the market is clearly in rally mode. Yesterday was no exception.

Thursday’s close was clearly a bullish one, which tilts the odds to higher prices to finish the week. However, the rally is getting a bit stretched, a pullback may be near.

Yesterday’s Sector Performance

Once again, Discretionary stocks finished in the top spot.

Energy stocks rolled back over, thanks to the drop in oil.

Five-Day Sector Performance

Discretionary stocks are still on top this week, but now distanced from all others.

Utilities are still the only sector in the red.

ETF Trade Watch

Technology Select Sector SPDR (XLK)

Consumer Discretionary Select Sector SPDR (XLY)

While I still caution investors to be careful about getting too carried away by the rally of the last week or so, we shouldn’t ignore the gains that are being made. Tech and Consumer Discretionary still remain strong as stocks push higher. Both ETFs appear to have broke out of their consolidation zones and are advancing higher.

As more traders both on Wall Street and Main Street see this break out, they are sure to want to try and get a piece of the action, which could see the prices higher. However, with a handful of retailers and tech companies slated to report earnings next week, risk remains elevated. Should any of these stocks report weak outlooks, stocks could be sent tumbling.