The Falling Energy Sector Has Minor Effect On Indexes
The important energy sector has been declining lower since February 24, 2012. Traders can easily see how the Energy Select Sector SPDR (ETF) (NYSEARCA:XLE) has rolled over since that time. The XLE is now trading below the important daily chart 50 moving average. This formation puts the XLE in a weak technical chart position. Traders can watch for some intra-day support around the $71.00, and $70.00 levels.
Some of the leading energy stocks that are declining lower today include Devon Energy Corporation (NYSE:DVN), Chevron Corporation (NYSE:CVX), and Southwestern Energy Company (NYSE:SWN) just to name a few. All of these stocks are approaching near term oversold conditions, therefore, small bounces could occur. It is still very important to remember that this entire sector is in a weak technical position on the charts at this time.