Market Recap For January 10th, 2022

As expected, stocks initially dropped to start the week. However, mid-way through the day, markets turned around and recouped most of the losses.

Monday’s reversal implies a continuation of the rally that started at the low. A break of that low would negate the forecast for a higher move.

Yesterday’s Sector Performance

Healthcare was the clear leader of the day.

Industrials ended up as the laggard, followed by Materials.

Five-Day Sector Performance

Nothing changed to start the week, Energy is still the lead sector.

Technology and Discretionary are the weakest sector over the past week.

ETF Trade Watch

Healthcare Select Sector SPDR (XLV)

Industrial Select Sector SPDR (XLI)

If markets to move higher off yesterday’s lows, Healthcare may be the leading sector, if not Technology.

However, a reversal of yesterday’s mid-day rally would be very bearish, and the Industrials space could take additional hits.

Good luck!