Market Recap For May 27th, 2022
Thursday’s extension of the market rally made it clear that this move may have the legs that prior rallies had not. Friday confirmed it.
Tough to say how far it will go, but odds still avor that it will still just be a rally within a larger bear market.
Yesterday’s Sector Performance
Consumer Discretionary has led every day of the current rally.
Defensive sectors were all at the bottom, yet again.
Five-Day Sector Performance
Discretionary’s 3-day run took it to the top of the week.
Healthcare had a good week, yet still ended up as the loser of the week.
ETF Trade Watch
Consumer Discretionary Select Sector SPDR (XLY)
Technology Select Sector SPDR (XLK)
The market is clearly in rally mode, but traders should not forget that pullbacks will occur in the process, possibly sharp ones.
Assuming markets move higher over the coming days and weeks, the XLK and XLY will look to recover from big losses.
Good luck!