Market Recap For December 5th, 2022
Coming into the week, several of the major indices had tested key resistance marks and were sitting just below them.
Monday saw the indices pull back from those resistances and close firmly in the red. The S&P now sits just above trendline support.
Yesterday’s Sector Performance
Defensive sectors moved to the top of the market, not surprisingly.
Energy and Discretionary stocks finished at the bottom.
Five-Day Sector Performance
Services are still leading, but that will change if stocks fall further.
Nothing has changed at the bottom of the week either. Energy still lags.
ETF Trade Watch
Utilities Select Sector SPDR (XLU)
Communication Services Select Sector SPDR (XLC)
The next day or so should reveal whether market resistance from last week wins, or market support, which was tested yesterday, wins.
If support fails to hold, look for the XLU to outperform. If stocks rally instead, the XLC should pick up where it left off last week.
Good luck!