Market Recap For October 22nd, 2021

Overall, stocks took a break on Friday. Although the Dow closed higher, the other major indices failed to do so.

The rally is still intact, but short-term momentum diverged on Friday’s last market runup. Pullbacks are healthy, and one may have started at week’s end.

Yesterday’s Sector Performance

Financials had a good day on Friday and finished on top.

Communications Services took some big hits on Friday, thanks to SNAP.

Five-Day Sector Performance

Seemingly out of nowhere, Real Estate ended up winning the week.

Friday’s losses sent Communication Services to the bottom.

ETF Trade Watch

Communication Services Select Sector SPDR (XLC)

Financial Select Sector SPDR (XLF)

It’s hard to tell how Communication Services will react to Friday’s decline moving forward, but the XLC is a great way to capitalize one way or the other.

Financials are on a run higher, and Friday seemed to end on a positive note. Traders might look to see if the XLF has anymore juice left in it.

Good luck!