[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”]
[/video_player]
The big indexes are just slightly off their recent all-time highs, but of course, not all stocks are doing equally well.
My attention is on the energy sector right now, as tracked by the Energy Select Sector SPDR ETF, XLE. It’s down close to 1.5% over the five days, and the zoomed-in chart I’ll share with you in a moment, you’ll see we actually broke through a multi-month low. It hardly crashed through, and it soon recovered, but it did break support. We’ll look at the likelihood of a bearish trend taking hold here.
Crude oil itself is experiencing lower highs and lower lows. It also broke through support but when it bounced back, it failed to punch through resistance.
As you might know, utilities stocks tend to work in inverse correlation to energy. As energy costs drop, their profit margins widen. The sector-tracking Utilities Select Sector SPDR, XLU, is up over the past five sessions – this is significant, and we’ll talk about it.
So let’s take a look at the tickers in play in tonight’s video…
