Chart of the Day - Wednesday, July 7th, 2021
July 7, 2021
Today’s Chart of the Day was shared by Bailey Baxter (@BBaxter2020). It's a chart of the Energy sector over the past year, on both an absolute (top) and relative (bottom) basis. The Energy sector has been the worst-performing sector of the S&P 500 for three straight days now, which is notable given how strong it has been this year. The sector is up more than 40% YTD and it has persistantly been the best performing sector the entire year. Bailey points out that $XLE is now below its 50-day moving average, and it has broken its November uptrend relative to the S&P 500. In other words, the Energy sector is breaking down on both an absolute and relative basis. Will the Energy sector resign its leadership in the second half of the year?