Chart of the Day - Friday, April 24th, 2020

Today’s Chart of the Day was shared on Twitter by Chris Verrone of Strategas Research (@verrone_chris). It's a chart of the S&P Energy Sector over the past year and a half, along with the percentage of stocks within the sector that are trading at 52-week lows. The big headline this week was the collapse of the May Crude Oil futures contract on Monday. Despite this development, Energy stocks held up surprisingly well. Chris notes "Zero Energy stocks traded to a 52-week low this week. Are stocks discounting the worst of the Oil crisis has passed?" The sector is still in a long-term downtrend and could easily continue lower from here. However, this sort of price action suggests that fears surrounding the impact of negative Oil prices may be a bit overblown.