Yo, Charts – aside from the bank crisis there’s the little issue with the S&P Energy Sector that’s going to be a bigger issue: the two-factor “model” shows price has rolled beneath its cresting 12-Mo MA + the rolling Monthly MACD. This is not a money making long set up. pic.twitter.com/kWJ9yTRbux
— da Chart Life (@daChartLife) May 2, 2023
Today’s Chart of the Day was shared by John Roque (@daChartLife). All eyes have been on the Financial Sector this week as Regional Banks continue to slide. However, the Energy Sector is down almost twice as much as the Financial sector so far this week. John points out that Energy looks vulnerable after running into resistance from the 2008/2014 highs. The 12-month moving average has begun to slope lower, and price is firmly below it. John also points out that the MACD is rolling over from a record overbought reading. It’s already the weakest sector YTD, and it looks poised for further downside given the recent deterioration in price and momentum.