Chart of the Day - Thursday, February 20, 2025

Patrick Dunuwila
March 20, 2025

Chart of the Day


🏆 Today's Chart of the Day was shared by Todd Sohn (@Todd_Sohn). 
 

  • Energy ($XLE) is currently the best-performing sector YTD, rising +8.8%. However, $XLE has traded sideways for nearly three years, consolidating in a messy range below its 2014 peak (upper pane). 
     
  • While Energy has lagged since 2022, Todd points out that the relative trend has improved. The ratio in the middle pane ($XLE/$SPX) broke out to a 3-month high earlier this week and a 7-month high today.
     
  • Despite the recent strength, Todd notes that Energy remains unloved by investors, with $XLE seeing persistent outflows since 2022 (lower pane). 
     

The Takeaway: The Energy sector is perking up versus the S&P 500 after being rangebound and unloved for nearly three years. 

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