BPENER energy sector bullish percent chart. Purple circle shows the start of the rally when Ben announced QE2 at Jackson Hole. Up until this month, the chart has not seen a 6% plus counter move to signal weakness ahead for energy. Now, however, the BPENER has fallen from 82-ish down to 74.35, let's call it 7 or 8 %. Contrary to what this chart is saying, the XLE continues to make new highs. This chart is leading so look for XLE to roll over.
Positive divergence in play for stochastics so some sideways may show up moving forward. As long as it remains in this 74-75 area or lower, the weakness will show up in XLE. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.