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The stock market’s rally from the late-June lows has been impressive, and even though the Energy Select Spyder ETF (XLE) is up almost 11% from its lows, the technical pattern is not impressive. The rebound has just retraced over 38.2% of the decline from the April highs and there is major resistance at $55.50-$57.20. Crude oil also looks weak from a technical perspective as the OBV is acting weaker than prices. There is key support now in the $69.50-$71.00 area.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
