Market Recap For October 17th, 2022
Markets rebounded on Monday, almost completely reversing Friday’s losses, while failing to take out the highs.
Thursday’s big jump, followed by Friday’s drop, then followed by Monday’s nearly 3 percent rally. Which move to trust? Today should provide clarity.
Yesterday’s Sector Performance
Discretionary stocks had been getting hit hard, yesterday brought a recovery.
Staples, which had been a top performer, fell to the bottom, albeit still in the green.
Five-Day Sector Performance
Financials and Healthcare now lead the past trading week.
Utilities are the only sector in the red over the past week.
ETF Trade Watch
Consumer Discretionary Select Sector SPDR (XLY)
Consumer Staples Select Sector SPDR (XLP)
Although the price action over the past 3 days has been volatile, a positive momentum divergence still exists.
If the S&P can take out the 3700 area, higher prices will likely follow and the XLY looks set to benefit. If not, the XLP could weather a decline better than most.
Good luck!