4 charts that says something is brewing. If the signals are true, XLE is a leading indicator which we will see some WTI, index moves in the near future.
Exhibit #1 – WTI stuck at 11-week level
Question: Consolidating or distributing?
Exhibit #2 – Energy sector XLE is worst performer YTD
Sticking out under-performance.
Exhibit #3 – Natural Gas is crashing
Maybe the correlation on this one is not clear enough – compare the highs and lows. I see it there just that Natgas moves are magnified.
Exhibit #4 – Put this ‘old’ correlation in the picture
Maybe that old correlation does not work anymore. If you believe it still works, XLE is a leading indicator.
Lastly combine this with what I observed about AUDJPY in an earlier article today.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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