Market recap: Briefing on a few concerns

Today is a flat session and $S&P 500 Index (.SPX.US)$ Stuck at 3120 for now. $Dow Jones Industrial Average (.DJI.US)$ Turn into the red as $Energy Select Sector SPDR Fund (XLE.US)$ and $Consumer Discretionary Select Sector SPDR Fund (XLY.US)$ Pulling down. So we are where we were last week with the market stuck in the same range. The market has also been anticipating the trade deal, and so far there is absolutely no news on that front.

(S&P 500: 3120.18 -0.06% DOW: 27934.02 -0.36% NASDAQ: 8570.66 +0.24%)

From all these indicators, I have noticed that the ATR, which measures market volatility, has dropped to its lowest level in 2019. A low ATR indicates compressed volatility, while a high ATR suggests a potential market pullback in the near future. Therefore, this is not indicating a bearish signal to me. Furthermore, among these sectors, I have observed that the healthcare sector is trending upwards, the technology sector is moving in an upward trend, and financials are also on an upward trajectory. A bearish market cannot be determined solely based on these sectors. To identify a bearish market setting, we would need to observe utilities and consumer staples playing a role if a bearish environment were to materialize.

But there's also a couple of concerns of mine toward the overall market. First of all, crude oil falls 2.3% to $55.74 per barrel while gold inched up 0.2%. Oil has not been in play in the last 3 weeks and been trading in 56-58 range, today it broke. Because it broke, it tanked the entire energy sector down with it. On the other aspect consumer discretionary has taken a leg out of this market, and we are about one week ahead of Black Friday. Since Black Friday is the high season for sales in the U.S., what I observed from this market is the retail sector has gone totally wrong in the last 24 hours. $Kohl's Corp (KSS.US)$ slumped 17% after it missed the earnings, $Macy's (M.US)$ hasn't had its earnings yet and the stock is plunged 10.90% today, $Nordstrom (JWN.US)$ down another 6.26% today, and we already had $Walmart (WMT.US)$ that missed on its revenue last week. These are having a massive negative influence on the retail sectors, speaks to more details to come out in days, this is starting to decimate the retail sectors.

So the next sectors to be watched are gonna be $Consumer Discretionary Select Sector SPDR Fund (XLY.US)$ and $Consumer Staples Select Sector SPDR Fund (XLP.US)$Since the XLP especially around its new highs recently, traders should be aware that there is a wild reversal that may take place out there. And keep eyes on taking gains and stop losses.