Will the Energy SPDR Resume its Climb?

by Sam Collins   03/26/08
Email This   Print Page  Tweet This Tweet This

The Energy Select Sector SPDR Fund (XLE) -- This index fund, which seeks to replicate the total return of the Energy Select Sector Index of the Standard & Poor's 500 Composite Stock Index (S&P 500 Index), has been in a bull market since late 2003. Since then, it has more than tripled.

Only recently, when oil stocks succumbed to some profit-taking, did the index fall below its 200-day moving average. It is currently trading within a triangle, with near-term support just under $70 and resistance at $76.

The stochastic indicator is now flashing a buy signal, but the overall chart formation is somewhat "toppy." And, if the XLE were to break below $63, the bull market would be over.


Get Sam Collins' Trade of the Day e-mailed straight to your inbox each morning before the opening bell absolutely FREE!

You'll also get, in the same e-mail, his Daily Market Outlook, to tell you what you need to know to survive and thrive in the trading day ahead!

Sign up today for Sam's Daily Trader's Alert. Click here now to get this FREE daily e-mail!

More By This Expert

Should You be Worried the Market is Overbought?

I've been noting that our internal indicators are overbought, but none of them actually issued a sell signal until yesterday.

Emerging Markets Fund Looks Tired

The iShares MSCI Emerging Markets Index Fund (EEM) has been a great performer but, like the broad market, is showing sign of fatigue.

Volume Declining to Lowest Level of the Year

Major investors are reluctant to put more cash to work until they are convinced that the economy is moving forward enough to warrant new investments.

Bulk Up Your Portfolio With SB

With shipping rates going up, dry bulk carrier Safe Bulkers Inc. (SB) has broken from a bullish formation.

Is the Market Tiring?

Most technicians would consider a divergence in the Dow averages to be a potentially important indication that the market is tiring. But is this a serious problem, yet?

Options Broker Center

Compare Brokers