Market Recap For December 6th, 2022
Not only did the S&P fail to hold the trendline support cited in yesterday’s Spotlight, but that failure also confirmed a bearish wedge formation, which is terminal.
Lower prices, overall, should be coming, and if our larger forecast is correct, those lower prices should result in new bear market lows.
Yesterday’s Sector Performance
Once again, defensive sectors led the market, with Utilities actually in the green.
Energy was on the bottom again, this time with Discretionary.
Five-Day Sector Performance
Utilities is now on top of the weekly as well.
Of course, Energy remains at the bottom of the weekly chart.
ETF Trade Watch
Utilities Select Sector SPDR (XLU)
Energy Select Sector SPDR (XLE)
Even though the larger forecast is for a continued decline, first level supports are getting close, or have already been tested.
Either way, two things are for certain: Utilities, and the XLU, have been leading, and Energy, with its XLE, have been the laggard.
Good luck!