Please enable javascript in your browser to view this site!

Energy leading all sectors, as WTI Crude attempts to bottom out

Just past mid-day, we still face a very choppy market and indices have stalled out near important overhead resistance where SPX had broken down  while the NASDAQ has begun to show counter-trend SELLS on hourly charts and daily charts here.. so despite the strength in NDX.. the pattern still looks vulnerable-   DJIA still down around 500 points from its early March highs and lower by about 0.84% on the month..  The big developments today concern the movement in the US Dollar index along with Crude oil surging as inventory data starting to seasonally tail off..  Energy outperforming all other 10 sectors while Discretionary and Healthcare attempting to rebound .  Financials a heavy weight here today as Yields thus far have not turned up.. but have followed European yields lower with some acceleration..  but TNX still well up above the key 2.30 area.. and yesterday's bond selloff makes a yield bounce likely.  For now..  not seeing too much more followthrough and the strong stocks within Tech like AAPL, MSFT have stalled out.  Energy looks to be a good risk/reward given Crude starting to bottom.. and relative and absolute charts of OIH, XOP look like a good risk/reward given the substantial underperformance this quarter which shows energy lagging even the next to last performer.. Telecom by over 300 bps and down -7.4% in YTD performance-  so heading into Q2.. investors who expect Crude to follow its normally Bullish seasonality trends would overweight this sector for some snapback-  5 of today's top 10 performers are all energy related.. while 3 retailers bouncing,and then VRTX leading all as would be expected.. up 21%.   Overall,  S&P JUNE FUTS UNDER 2360 keeps this sideways motion at bay-  and initially this is an area to sell into for Trading-  On the downside- 2348 impt.. then 2344-  Let me know if you have questions