‘Bloody’ describes US energy sector stocks last night
XLE sector holdings a field of red
XLE is a SPDR sector ETF. I use it as snapshot/indication of how the US energy sector is doing. According to fund description,
Energy companies in this Index primarily develop and produce crude oil and natural gas, and provide drilling and other energy-related services. Leaders in the group include ExxonMobil Corp., Chevron Corp, and ConocoPhillips.
This was the fund’s performance last night. At a loss of 2.36%, it is second best loser behind financial services down 2.46%.
The sector heatmap is dramatic – a field of red.
WTI confluence of resistance from $44 – 47
Stocks are likely to be responding to this chart of WTI. If that downward equidistant channel is valid, then WTI’s rally from February was merely a retracement in a big downward trend that remains intact. This is what I thought about that WTI bottom. Without a big bullish reversal pattern, it is not unthinkable for WTI to revisit $35 and then subsequently early-2016 lows. A good narrative here ‘U.S. oil industry bankruptcy wave nears size of telecom bust‘.