Sector Spotlight: Will Friday’s Rally Continue?
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Market Recap For October 21st, 2022
Friday’s Spotlight forecast a break to upside for the stocks, and the market delivered in the form of 2 -3 percent rally.
Now that the market has broken free from its 3-day drift, stocks should be embarking on its next leg higher, even if there is a pullback first.
Yesterday’s Sector Performance
Materials rebounded in a big way on Friday, as did several other sectors.
Real Estate was the weakest sector during Friday’s runup.
Five-Day Sector Performance
Energy ended up winning the week, to no real surprise.
Defensive sectors lagged, starting with Healthcare and Staples.
ETF Trade Watch
Materials Select Sector SPDR (XLB)
Energy Select Sector SPDR (XLE)
October 13th should mark a low that holds for weeks to come, before eventually giving way to another leg down for the bear market.
Assuming the above forecast plays itself out, most sectors will move higher, but traders could start by checking out the XLB and XLE.
Good luck!
