State Street Energy Select Sect
Investment Thesis
XLE's relative strength vs. SPY has collapsed to an RSI of 22.9 — deeply oversold territory that historically precedes mean-reversion recoveries. With price bouncing off April 17 lows and approaching the 50-day SMA from below, a reclaim of that level would open the door back toward the $61–62 zone.
Catalysts to Watch
XLE/SPY relative strength ratio RSI hit 22.9 (deeply oversold), confirming extreme sector underperformance; price bounced +6.5% off the April 17 intraday low of $53.41 and is now testing the 50-day SMA ($57.28) from below.
Why It May Work
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Timeline
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