Chart of the Day - Tuesday, August 8, 2023

Today's Chart of the Day was shared by Larry Tentarelli (@LMT978). Energy ($XLE) was one of the weakest sectors in the year's first half. However, it's currently up +7.5% in the second half and leading by a wide margin. $XLE was down -2.2% this morning, but Larry points out that buyers showed up at the 20-day moving average. It closed on the highs of the day, up +0.49% overall. The Energy sector looks ready to resume its long-term uptrend as it's on the verge of six-month highs. While it has struggled over the past year, Energy has been the clear leader in the post-Covid era. Over the past three years, $XLE is up +170%. That's 3x the second-best sector (Tech +54%) and nearly 5x the S&P 500 (+34%).