Chart of the Day - Monday, April 1, 2024

🏆 Today’s Chart of the Day was shared by Larry Thompson (@HostileCharts).

• The Energy Sector ($XLE) closed at its highest level in nearly a decade today after clearing resistance at $94 on Friday.

• $XLE hasn't done much since the Summer of 2022, but it's still dominating in the post-COVID era. It's up +380% from the March 2020 lows, while the next best sector (Tech) is up +208%.

• Larry points out that breadth and momentum are strong. RSI has confirmed the breakout by hitting multi-year highs, while all 26 components are above their 20-day and 50-day moving averages.

The takeaway: The Energy sector ($XLE) is waking up from a two-year nap, and market internals suggest a new leg higher.