Chart of the Day - Tuesday, March 16th, 2021

Today’s Chart of the Day was shared on Twitter by Drew Wells (@DrewTheCharts). It's a weekly candlestick chart of the Energy sector ETF, $XLE, over the past six years. The Energy sector is off to a terrific start this year. $XLE is currently up 36% year-to-date, which is more than 2x the performance of the second-best sector (Financials). However, it's noticeably lagging the other sectors this week, as it runs into former support. This is an important test for the S&P's hottest sector. As Drew points out, $55 is the line in the sand for $XLE. Above $55 = Bullish. Below $55 = Bearish. In a comment to The Chart Report, Drew added, "The Energy sector is a good bellwether for the cyclical rotation/reopening trade. Cracking that $55 level gives a lot more confidence in a sustained rotation for those themes, and remaining below suggests that the rip off the March & November lows was more of a mean reversion move."