Market Recap For July 11th, 2022
The most recent leg of the rally that began last month ended at Friday’s high, and the pullback that started didn’t seem to be over at yesterday’s close.
Assuming stocks decline further today, the ideal downside target for the S&P would be 3800. A failure to hold that mark could jeopardize the larger rally.
Yesterday’s Sector Performance
Utilities found their way back to the top of the market.
Discretionary and Services were co-leaders of yesterday’s drop.
Five-Day Sector Performance
Technology stocks have performed best over the past week.
Energy stills sits at the bottom, followed by Utilities.
ETF Trade Watch
Technology Select Sector SPDR (XLK)
Communication Services Select Sector SPDR (XLC)
The market likely has more downside to go. However, for now, that downside should be within the context of the larger rally.
If the above forecast holds up, Services and Technology will likely perform well, and that means the XLC and XLK would too.
Good luck!