Market Recap For August 4th, 2022

Markets didn’t make much headway, up or down, yesterday. The S&P failed to take 4160 again, as the Nasdaq inched a little higher.

The most recent leg of the rally seems a bit extended, and with the indices sitting at, or near key resistances, a pullback would seem to be close.

Yesterday’s Sector Performance

Once again, Tech and Discretionary led the market.

Energy was at the bottom for the second day in a row.

Five-Day Sector Performance

Discretionary is the weekly leader, as it has been for a while now.

Energy is the clear market laggard, distances from all others.

ETF Trade Watch

Energy Select Sector SPDR (XLE)

Technology Select Sector SPDR (XLK)

Sure enough, oil extended its decline, as forecast in yesterday’s Spotlight. The drop doesn’t seem to over, so look for the XLE to fall further.

Technology is still a top performer, and if the market rally can keep running, the XLK should hit more recovery highs as well.

Good luck!