Sector Spotlight: Bears Clawback Some Gains

Market Recap For August 17th, 2022

Stocks dropped right out of the gate on Wednesday, falling as much as one percent or more before recovering throughout the middle of the day.

By the time the close came, the major indices had moved back into the red, although not as deep as they had been earlier in the day.

Yesterday’s Sector Performance

Thanks to oil moving higher, Energy stocks performed well.

The weakest sector on the day was Communication Services.

Five-Day Sector Performance

For the first time in months, Financials are leading the trading week.

Healthcare is still at the bottom, followed by Communication Services.

ETF Trade Watch

Financials Select Sector SPDR (XLF)

Energy Select Sector SPDR (XLE)

Although markets were down yesterday, it wasn’t an overly bearish looking day, which means bullish traders may want to keep an eye on the XLF.

Likewise, the XLE has been performing quite well, even when oil hasn’t, and that makes it a candidate for the bulls as well.