Market Recap For March 31st, 2022
Yesterday’s Spotlight stated that traders should not be surprised if Wednesday’s decline was the start of a bigger pullback. Surprise!
All major indices closed on their respective lows, which commonly spells trouble for the following morning, at minimum.
Yesterday’s Sector Performance
The defensive sectors, like Utilities and Staples, held up best yesterday.
Financials struggled the most.
Five-Day Sector Performance
Real Estate and Utilities are still on top of the week.
Energy has been replaced at the weekly bottom by Financials.
ETF Trade Watch
Financials Select Sector SPDR (XLF)
Energy Select Sector SPDR (XLE)
The market looks like it has more downside work to do, but for now that reality should be viewed as a pullback before heading higher. For now.
Regardless, Energy and Financials seem like the most likely candidates to get hit on further declines, which would mean the XLE and XLF are too.
Good luck!