The Energy Sector ($XLE) has been an awful performer over the last several months. While consumers cheer at the decline of prices at the pump and economists get anxious about the impact of falling oil prices will have on GDP. Luckily as technicians we aren’t as concerned about why a market acts the way it does.
Back in July I wrote about the bearish chart setup for the energy sector and why I thought it was due to pullback. On Monday, I showed the chart of the relationship between XLE and SPY, with it being the first time monthly momentum having entered ‘oversold’ territory. Being the worst performing sector year-to-date, is it time to start looking to catch the falling knife? The latest price action and historic lows in sentiment may help provide some key insights.
Click Here to see the charts and keep reading at See It Market
Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this post is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer. Connect with Andrew on Google+, Twitter, and StockTwits.
