Chart of the Day - Friday, July 7, 2023

Today's Chart of the Day was shared by Ian McMillan (@the_chart_life). Energy continues to be the weakest sector year-to-date after outperforming by a mile last year. However, the sector led by a notable margin on Friday as Crude Oil broke out from its recent downtrend. Ian points out that Small Cap Energy Stocks ($PSCE) are holding up better than their Large Cap peers ($XLE). Not only is $PSCE outperforming $XLE year-to-date, it's also above its June highs, while $XLE remains below its June highs. Small Cap underperformance has been a big theme in the broader market this year, but it's not evident in the Energy sector. This is bullish for the entire sector as it demonstrates risk appetite for Energy stocks.