Market Recap For February 2nd, 2022

Our Spotlights have been forecasting higher moves since the end of last week, and the markets have followed suit.

However, both the S&P and Nasdaq have made their way up to meaningful resistance points. A turn down could be imminent.

Yesterday’s Sector Performance

Thanks in part to GOOGL, Communication Services led the market.

Consumer Discretionary was the only sector in the red.

Five-Day Sector Performance

Communication Services has also had a very, very big week.

Industrials are still in the green, but also at the bottom.

ETF Trade Watch

Energy Select Sector SPDR (XLE)

Communication Services Select Sector SPDR (XLC)

The one sector that has been a constant over several weeks has been Energy, as can clearly be seen with the performance of the XLE.

The XLC has skyrocketed, so there may not be much left in the tank. Bullish traders may want to wait for a pullback.

Good luck!