Market Recap For February 1st, 2022

This week has been a relatively easy one to forecast. Expectations were for a higher move, and the market has accommodated very nicely.

Once again, the countertrend rally does not seem to be done just yet. The rally should continue, but key resistances sit around 1 percent overhead.

Yesterday’s Sector Performance

Energy stocks jumped in a big way on Tuesday.

Utilities and Real Estate did not perform so well.

Five-Day Sector Performance

Technology took the weekly lead, as implied in yesterday’s Spotlight.

Real Estate has now made it to the bottom of the pack.

ETF Trade Watch

Energy Select Sector SPDR (XLE)

Technology Select Sector SPDR (XLK)

Although the major indices are likely extending further, it’s been a sharp rise, and resistances sit just overhead.

The XLK and XLE are worth a look, but bullish traders should be cautious of the market possibly being close to a pullback.

Good luck!