Sector Spotlight: One Sector Continues To Soar, While The Other Sinks
Market Recap For August 4th, 2022
Markets didn’t make much headway, up or down, yesterday. The S&P failed to take 4160 again, as the Nasdaq inched a little higher.
The most recent leg of the rally seems a bit extended, and with the indices sitting at, or near key resistances, a pullback would seem to be close.
Yesterday’s Sector Performance
Once again, Tech and Discretionary led the market.
Energy was at the bottom for the second day in a row.
Five-Day Sector Performance
Discretionary is the weekly leader, as it has been for a while now.
Energy is the clear market laggard, distances from all others.
ETF Trade Watch
Energy Select Sector SPDR (XLE)
Sure enough, oil extended its decline, as forecast in yesterday’s issue. The drop doesn’t seem to over, so look for the XLE to fall further. Also, continue to keep your eyes fixed on the price of oil, as a sharper decline would drag this sector down with it.
Technology Select Sector SPDR (XLK)
Technology is still a top performer, and if the market rally can keep running, the XLK should hit more recovery highs as well. Tech stocks have been strong over the past couple weeks of this market rally. Investors and traders are both helping themselves to the gains made in this area od the market. Oftentimes, technology as risk assets outperform when the market is rallying and take a larger hit when it is in decline. Keep this in mind as market dynamics shift.