Sector Spotlight: Big Tech Steps Up To The Earnings Plate
Market Recap For July 26th, 2022
Tuesday brought declines across the board, as traders and investors prepare for today’s FOMC statement.
FOMC or no FOMC, our forecast is for markets to move higher, overall. Volatility will likely heighten today, and its best to see how the day ends.
Yesterday’s Sector Performance
Markets were weak yesterday, which means Utilities rose to the top.
Discretionary stocks remained at the bottom.
Five-Day Sector Performance
The start of this week has moved Utilities to the top of the week.
Communication Services has moved deeper in the red.
ETF Trade Watch
Utilities Select Sector SPDR (XLU)
Consumer Discretionary Select Sector SPDR (XLY)
The current pullback may have a little more to go, or it may end right away, depending on how the coming earnings announcements and FOMC meeting of this week go. Regardless, Utilities lead in weak markets, Discretionary performs well otherwise. The above patterns signal what could be some continued bullishness through the week. Instead of predict the turn, I advise simply play what’s in front of you.
So, depending on how it all unfolds throughout the rest of the week, traders might want to keep both the XLU and the XLY on their watchlist today.