Market Recap For May 31st, 2022

Not much happened to start the holiday shortened week. Stocks spent most of the day underwater, but very little damage was done.

Today should hold clues as to whether the current rally is still in force, or if it’s time for some profit taking after the 3+ day runup.

Yesterday’s Sector Performance

Consumer Discretionary continues to outperform all other sectors.

Energy and Materials were neck and neck at the market bottom.

Five-Day Sector Performance

Discretionary starts the week right where it finished last week: On top.

There was also no change at the bottom of the weekly, as Healthcare brings up the rear.

ETF Trade Watch

Consumer Discretionary Select Sector SPDR (XLY)

Energy Select Sector SPDR (XLE)

The market past of least resistance still points higher, although a pullback may be underway. Higher prices would seem to favor the XLY.

Meanwhile, oil looks as if it will be moving lower, and that might present bearish opportunities on ETFs such as the XLE.

Good luck!