Market Recap For July 12th, 2022
Yesterday’s forecast suggested lower prices, and a likely test of S&P 3800. The benchmark index made it down to 380s before getting a last-minute bounce.
The market is winding up in a pattern that should be broken very soon. A failure to hold 3800 would tilt the odds towards a test of the bear market lows, or lower.
Yesterday’s Sector Performance
All sectors ended in the red, but Materials held up best.
Energy stocks were at the bottom, but with oil’s drop it could have been worse.
Five-Day Sector Performance
Utilities are back on top of the weekly.
Discretionary stocks have fallen to the bottom, followed by Energy.
ETF Trade Watch
Consumer Discretionary Select Sector SPDR (XLY)
Energy Select Sector SPDR (XLE)
If the market rally that started last month is the multi-month that has been forecasted, the area around yesterday’s low should hold up.
In that scenario, the XLY should bounce back. However, the Energy driven XLE may be heading lower independent of the stock market’s overall direction.
Good luck!