— Chris Ciovacco (@CiovaccoCapital) April 18, 2022
Today’s Chart of the Day was shared by Chris Ciovacco (@CiovaccoCapital). It’s a ratio chart of the Energy Sector vs. the Technology Sector ($XLE/$XLK) over the past three years. Energy is by far the best-performing sector year-to-date, with a gain of 47.5%. On the other hand, Tech has been the worst-performing sector, down more than 15% year-to-date. Despite the recent weakness, Tech remains the heaviest weighted sector of the S&P 500, representing more than 26% of the index. Energy is the third-smallest sector, representing less than 5% of the S&P 500. Chris points out that Energy just broke out to a fresh 2-year high relative to Tech on a closing basis. The ratio is also above several rising moving averages ranging from the 50-day to the 250-day. In other words, the trend continues to favor Energy over Technology.