Sector Spotlight: Market Momentum Remains Bullish
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Market Recap For July 27th, 2022
Markets opened Wednesday higher and continued higher after the FOMC statement was released, which perfectly aligned with our forecast.
Stocks closed somewhat off of their highs, so today could see a pullback. However, until a signal appears to show otherwise, the path should remain higher.
Yesterday’s Sector Performance
In a sea of green, Communication Services rose to the top.
Utilities barely managed to find any green at all.
Five-Day Sector Performance
Utilities still lead the week, but that will likely change soon.
Communication Services is still in the negative, even after yesterday.
ETF Trade Watch
Communication Services Select Sector SPDR (XLC)
Technology Select Sector SPDR (XLK)
The pullback that started last Friday appears to be over, and the rally back in force, at least for now. After some surprise moves based on better-than-expected earnings reports with more on the way. For tech, Apple announces earnings after-hours on Thursday, which if report strong earnings, will be sure to take XLK higher.
Google also gave their quarterly report which showed the company missed on both earnings and revenue, dragging the stock and XLC down a bit. Earnings plays for traders are come with an increased level of uncertainty, and with that risk, so trade safe.
If the post-FOMC meeting trend continues, traders should expect the XLC and XLK to perform better than most.
