Weakness Developing in Energy
By Mike Paulenoff, www.MPTrader.com
Today's weakness in the Energy Select SPDR (AMEX: XLE) coupled with the developing downtrend in my daily RSI pattern suggest strongly that last week's near-vertical advance indeed was a vicious counter-trend climb to a lower-high, rather than a new upleg. My work is warning me that the energy complex in general, and the XLE in particular, is in the early phase of a developing intermediate-term top formation that may take some additional time to mature, but which also will press the price structure towards a confrontation with its rising 200 DMA (now at 66.50) in the near future. Major components Schlumberger (NYSE: SLB), Exxon (NYSE: XOM), ConocoPhillips (NYSE: COP), Chevron (NYSE: CVX) all look like their individual chart structures are rolling over.