Chart of the Day - Wednesday, March 26, 2025

🏆 Today's Chart of the Day was shared by Jason Perz (@JasonP138)
 

• Energy ($XLE) has been the only positive sector in March, rising +3.9% MTD, while the S&P 500 has fallen -4.1%. 
   
• $XLE is still up more than +300% from its 2020 low, making it the best-performing sector over the past five years, However, it's made little progress in recent years. 
   
• Jason points out that $XLE has coiled into a narrow range, setting the stage for a large move or trend. This consolidation pattern should resolve in the direction of the underlying trend, which, in this case, is higher.
   

The Takeaway: Despite three years of sideways action, Energy ($XLE) has been the best-performing sector this month, this year, and over the past five years. It continues to coil into a narrow range, building pressure for an eventual breakout.