$XLE - Weakness in the Energy Sector Could Bring Stage 4 Decline

AMEX:XLE   SPDR Select Sector Fund - Energy Select Sector
The Energy sector is notoriously one of the last to roll over in a recessionary environment and the $XLE chart appears to be topping out right on queue.

After a euphoric run beginning in the middle of 2020, the Energy sector has stalled out creating a triple top near the $90 level.

With the break of the 200-day moving average, along with an accompanying bearish momentum regime in the RSI, we expect the Energy sector to begin its descent into a Stage 4 decline.

Many individual stocks within the Energy sector look prime for capitulation events and accompanying sector weakness would further aggravate already anemic charts.

PT near 60.


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