Market Recap For January 25th, 2022
Expectations for a follow through did not materialize on Tuesday, but that weakness did not lead to a break of Monday’s lows.
For now, the forecast for a higher move is intact, but bullish traders are likely not too energized by yesterday’s closing hour.
Yesterday’s Sector Performance
Energy stocks had a big day on what was otherwise a downer.
Communication Services and Technology were the weakest sectors.
Five-Day Sector Performance
Thanks to yesterday’s pop, Energy is now back on top of the weekly chart.
Discretionary is still in the basement, followed by Communication Services.
ETF Trade Watch
Communication Select Sector SPDR (XLC)
Consumer Discretionary Select Sector SPDR (XLY)
Traders should still be leaning towards the bullish side, but there are obviously never any guarantees with the market.
If stocks fail to move higher, traders should plan to look for bearish opportunities in the XLC and XLY.