Market Recap For October 27th, 2021

Yesterday’s forecast referenced the market’s price action that was consistent with an impending decline, and sure enough, it was.

Wednesday’s decline does not appear to be over, but overall, the market should be setting its sights on further highs.

Yesterday’s Sector Performance

Markets might have struggled, but Communication Services did not.

Energy, on the other hand, had a very rough day.

Five-Day Sector Performance

Real Estate fell, and Consumer Discretionary took the weekly lead.

Wednesday’s decline pulled Energy to the bottom of the week.

ETF Trade Watch

Energy Select Sector SPDR (XLE)

Consumer Discretionary Select Sector SPDR (XLY)

Even though the XLY has a bearish look to it, traders should still monitor it for potential bullish plays as long as the sector continues to hold up well.

On the other hand, markets look weak, and appear set to move lower. In that scenario, the Energy linked XLE could get hit harder.

Good luck!