Market Recap For October 25th, 2022

As stated in yesterday’s Spotlight, the S&P taking out the 3800 mark should lead to another leg up, and 3800 fell on Tuesday.

The market has had a nice 3-day run, so a pullback would not be a surprise. That being said, the S&P would seem to want to make it to the 3900 area soon.

Yesterday’s Sector Performance

Somewhat surprisingly, Real Estate popped big on Tuesday.

Energy underperformed the rest of the market.

Five-Day Sector Performance

Even with yesterday’s lackluster showing, Energy still sits on top of the week.

Utilities are now at the bottom, thanks to Real Estate’s Tuesday rally.

ETF Trade Watch

Communication Services Select Sector SPDR (XLC)

Real Estate Select Sector SPDR (XLRE)

After its terrible run lately, it’s hard to trust Real Estate’s pop yesterday. However, it’s possible that it is the start of a recovery, and the XLRE is a great way to play it.

The same could be said for the Communication Services sector, but if the market continues upward, the XLC should move up with it.

Good luck!