Best rally for Energy by a mile. pic.twitter.com/f97Ax7Qgve
— Strategas (@StrategasRP) April 8, 2020
Today’s Chart of the Day was shared on Twitter Strategas Research (@StrategasRP). It’s a chart of the S&P 500 Energy Sector over the past three decades, along with a 10-day rate of change indicator below it. Energy has been a clear underperformer for years. However, over the past two weeks, the sector has staged an impressive rally. The Energy Sector ETF, $XLE, is up nearly 20% over the past 10-days, making it the best performing sector during that period. As Strategas points out, this has been the largest 10-day rally for the sector in the past 30-years. Energy is still in a nasty downtrend on both an absolute and relative basis, but the recent strength has many wondering if the worst could finally be over for this beaten-down sector.