ETF Sector Spotlight For 01/19/2022

January 19, 2022

Market Recap For January 19th, 2022

Tuesday’s price action hinted to an extension of its decline into Wednesday. Stocks tried to rally, but the larger current prevailed.

Several supports were broken yesterday, but others are sitting just below. Bottom line is that lower prices appear to be coming. The trend is lower.

Yesterday’s Sector Performance

The defensive sectors Utilities and Staples managed to gain on the day.

Financials were hit again, as was Consumer Discretionary.

Five-Day Sector Performance

Energy is pulling back to the pack, but still leads.

Financials have been joined by Technology and Discretionary at the bottom.

ETF Trade Watch

Technology Select Sector SPDR (XLK)

Consumer Discretionary Select Sector SPDR (XLY)

Markets look like they’re in trouble, and if they are, Technology and Discretionary stocks are currently leading the way.

That would make the XLK and XLY prime candidates for bearish plays, and it just so happens that they both broke supports yesterday.

Good luck!

About The Author

Christian Tharp, CMT

I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group. My Chartered Market Technician (CMT) designation substantiates me as an expert in areas such as the technical analysis of stock trends, market indicators, cycles, price patterns, Elliot Wave principles, Candlestick charting, analyzing financial trends and behaviors, portfolio strategies, and forecasting future price movements. With my straightforward approach to simple, systematic trading, students learn how to strategically assess buy signals and market entry timing, establishment and management of stop losses, and how to employ a simple and disciplined trading approach that creates profits.

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