As stocks sold off yesterday, Energy $XLE and Healthcare $XLV were the only positive sectors.
Zeroing in on Energy, itβs completing a breakout to new highs while most other groups are moving sideways.
Zooming out, XLE is at a crossroads in its relative trend.
This is the same level that saw the sector break out relative to the broader market in 2022. After a prolonged period of underperformance, if Energy is ever going to rekindle some of the momentum it had back in β22, this is the time and place for it.
All eyes are on Energy completing this breakout, especially as other sectors start to cool off for the rest of the summer.
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