Market Recap For May 9th, 2022
Pretty rough day to start the week, as all major indices finished firmly lower, and multiple key levels were taken out.
As stated in yesterday’s Spotlight, the path of least resistance is down. A bounce is likely getting close, but traders are cautioned not to try to catch the knife.
Yesterday’s Sector Performance
Ever so slightly, Consumer Staples actually found some green.
Energy got absolutely crushed on Monday.
Five-Day Sector Performance
Thanks to Energy’s rough start to the week, Utilities moved to the top.
Discretionary is still the top of the bottom feeders.
ETF Trade Watch
Consumer Staples Select Sector SPDR (XLP)
Consumer Discretionary Select Sector SPDR (XLY)
Until there is a clear reversal or capitulation of some kind, going long on anything is most likely not worth the risk. However, the XLP is holding on somewhat.
For now, it’s all about the downside, and even though Energy got drilled yesterday, it’s been Discretionary, and the XLY, for quite some time hitting the lows.
Good luck!