Market Recap For September 6th, 2022
As stated in yesterday’s Spotlight, the Thursday-Friday lows were critical to the market’s move. The lows were breached, but ultimately held.
The breaching of the lows would seem to imply the bottom is giving in and a breakdown is coming. S&P 3900+/- is key to the forecast.
Yesterday’s Sector Performance
Real Estate was the outlier in what was otherwise a weaker day.
Communication Services and Energy finished Tuesday as the laggards.
Five-Day Sector Performance
Healthcare is holding up better than most over the past trading week.
Energy continues to struggle, distancing itself from the rest of the market.
ETF Trade Watch
Technology Select Sector SPDR (XLK)
Energy Select Sector SPDR (XLE)
The major indices held on for another day, but the signs aren’t good. Unless there is a meaningful rally soon, much lower prices should be coming.
If the current decline is going to extend, traders might want to look for bearish plays in the XLE and XLK.
Good luck!