Market Recap For August 31st, 2022

The market has delivered on each Spotlight forecast this week, all of them being to the downside, as once again stocks finished lower.

Today’s forecast is the same as the previous days, which is lower. Until the market shows a different look, the path is still lower.

Yesterday’s Sector Performance

Communication Services held up relatively well during yesterday’s decline.

Materials saw the biggest drawdown on the day.

Five-Day Sector Performance

Utilities have now replaced Energy at the top of the heap.

Nothing has changed at the bottom; Technology still owns the spot.

ETF Trade Watch

Consumer Discretionary Select Sector SPDR (XLY)

Technology Select Sector SPDR (XLK)

Nothing new in today’s sector analysis. The path of least resistance is down until the market sends a message otherwise.

If that path stays intact, look for the XLK and XLY to continue to take bigger hits than most, as they did yesterday.

Good luck!