Today the markets are seeing some ugly declines and to the average investor, there seems to be no bottom in sight. Everyone is looking at Ebola as the culprit for spooking the markets. While this might be true, I am looking at Energy Select Sector SPDR ( ETF
) (NYSEARCA:XLE) as the reason this market has seen a dramatic fall recently. I wrote an article a couple months ago as seen here, discussing how the Energy Select Sector SPDR ( ETF
) (NYSEARCA:XLE) had diverged from the overall market and was talking to us. While this market might have some more downside to it, I am looking at the weekly chart of Energy Select Sector SPDR ( ETF
) (NYSEARCA:XLE), as you can see, we are into a very good support area
here around $77.25. In my opinion, it is the XLE
chart that will dictate the market direction, not Ebola.
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