Market Recap For August 2nd, 2022

As suspected, markets took another stab higher. However, once again, the attempt to push through key resistance marks failed.

The Dow, in particular, looks set to fall. In addition, both the S&P and Nasdaq have formed weakening momentum on the most recent runup.

Yesterday’s Sector Performance

All sectors ended up in the red, with Services barely winning the day.

Real Estate fell to the bottom of the market.

Five-Day Sector Performance

Discretionary is still the weekly leader, no changes.

Healthcare is not only at the bottom, but it is now the only sector in the red.

ETF Trade Watch

Energy Select Sector SPDR (XLE)

Real Estate Select Sector SPDR (XLRE)

Oil failed to retake neither the $95 level nor the 200 MA, which means the potential for a big fall remains. The XLE would likely tank in that scenario.

With Real Estate seeming to break down yesterday, a larger pullback could be in the works for the XLRE.

Good luck!