Big Energy Feels The Heat
This morning, the leading integrated energy stocks are coming under selling pressure. It is important to note that the energy sector accounts for roughly 17.0 percent of the S&P 500 Index. It is now very easy to see why this industry group is so important for the major stock indexes.
The leading energy stock in the sector is Exxon Mobil Corp (NYSE:XOM). Today, XOM stock is declining lower by $1.00 to $89.02 a share. Short term traders should watch for intra-day support around the $88.80, and $88.32 levels. The daily chart is signaling support around the $87.75 area. Traders must remember, XOM has the largest market capitalization in the world around $410.0 billion.
Some other leading integrated energy stocks that are declining lower today include Chevron Corp (NYSE:CVX), ConocoPhillips (NYSE:COP), and BP plc (NYSE:BP). All of these leading energy stocks are still signaling further weakness on the daily charts. As long as these stocks remain weak it is very difficult for the major stock indexes to trade higher. Often, the leading energy stocks will trade inverse to the U.S. Dollar.