Important action in the Energy Equity Sector

There is some interesting action occurring in the XLEs...the S&P 500 Energy Sector SPDR.

From May through August the Energy Sector formed what technicians call a ‘Rectangle Pattern’.  This just means that it traded in a range with well-defined support and resistance levels.  In this case the top of the range or resistance had been $70 while the bottom or support had been at $65.  On August 18th the topside was broken and now it is important to see if it holds because it may become important support. 

For a look at the other Sectors visit the Market Blog.