Market Recap For October 18th, 2022

Monday’s market rally extended into Tuesday, although a large chunk of the gains were given back by the close.

Even though he close wasn’t as thrilling as the bulls might like, the path of least resistance is still up.

Yesterday’s Sector Performance

Industrials led the way, with Materials not too far behind.

Communication Services and Healthcare brought up the rear, although still in the green.

Five-Day Sector Performance

Financials are now the clear leader over the past week.

Utilities are the now in the green, but still lagging all others.

ETF Trade Watch

Industrial Select Sector SPDR (XLI)

Materials Select Sector SPDR (XLB)

Unless something new develops, markets have signaled a multi-week or month rally is currently underway. If that holds, Materials and Industrial are the current leaders.

Traders might want to analyze the XLB and XLI for potential bullish trading opportunities, while staying away from the defensive sector ETFs.

Good luck!