Market Recap For May 26th, 2022
Yesterday’s Spotlight, in reference to the S&P’s down channel, stated that all trendlines break eventually, and the S&P’s resistance line was taken out.
That break would seem to confirm a longer rally to be underway, even if there are pullbacks along the way.
Yesterday’s Sector Performance
Consumer Discretionary led the way once again.
Also once again were the defensive names being the weakest.
Five-Day Sector Performance
Energy is still in the leadership position, but Financials are not far behind.
Communication Services are at the bottom of the week, but finally back in the green.
ETF Trade Watch
Consumer Discretionary Select Sector SPDR (XLY)
Financials Select Sector SPDR (XLF)
At this juncture in the rally, Consumer Discretionary and Financial stocks are the strongest, and there is no reason not to expect more of the same.
Of course, that is assuming the overall market rally extends. If so, bullish traders might want to analyze the XLY and XLF for possible trade setups.
Good luck!