Market Recap For August 8th, 2022
Yesterday’s Spotlight referenced the possibility that key resistance marks sat just above Friday’s close. After a brief Monday morning pop, stocks fell lower.
Although it wasn’t an overly bearish day, reversing from important resistance areas are not usually bullish, at least in the short run.
Yesterday’s Sector Performance
Most sectors managed to find some green, led by Real Estate.
Technology stocks ended up as the one sector meaningfully in the red.
Five-Day Sector Performance
Communication Services is now the leading sector over the past trading week.
Energy recovered further on Monday, but not enough to get it off the bottom.
ETF Trade Watch
Real Estate Select Sector SPDR (XLRE)
Technology Select Sector SPDR (XLK)
If Monday’s decline from the highs has legs, and its sector performance continues, Real Estate may perform best, and Technology may see some profit taking.
In that scenario, bearish traders might want to look at the XLK for trades, while bullish traders could analyze the XLRE.
Good luck!