Oil – Oil has been consolidating and as expected there is support around $51. This level is support because it was clearly defined resistance three times over the past 16 months before breaking through it in December. It failed and had a significant selloff from this level in October of 2015, in early June, and again in October.
Copper – Copper continues to uptrend and test resistance around the $270 level. This is where it ran into resistance in November and early December. It is coming off of multi-year lows so it may be setting up for another rally if this level breaks. There does not seem to been clearly defined resistance between current levels and $300.
XLE – S&P 500 Energy Sector ETF – The XLEs consolidated for about a month just above $74 before finally breaking the lower side of the range yesterday. There will probably be support around $71 because it was resistance in August, September, and October.
XLI – S&P 500 Industrials Sector ETF – The XLIs have sold off after becoming overbought at all-time highs. Longer-term, if they sell off there may be support around the $59-60 level because this was the top of the range from July through early September. Short-term, the $62 level has been support and the lower end of the recent range.
XLB – S&P 500 Materials Sector ETF – The XLBs have seen some profit taking after gapping up to all-time highs and becoming overbought after breaking resistance around the $52 level. There was resistance at this level because it was the all-time high in early 2015. Longer-term, $49 was the top of the range from the middle of July throughout the early part of September so there may be some support at that level.
XOP – S&P 500 Oil & Gas Exploration & Production ETF – The XOPs are testing important support around the $40 level. The $40 level is support because it was resistance in August, October, and November of 2015 and again in October of 2016. If it breaks there may be a significant move lower.