State Street Energy Select Sect
Investment Thesis
XLE broke decisively below its 50-day MA ($57.44) three weeks ago and has continued lower in an accelerating decline, closing at $53.77 — down nearly 14% from its 52-week high. The XLE/SPY relative ratio simultaneously slipped below its own 50-day average, confirming broad sector underperformance. Path of least resistance points toward the $50 psychological level.
Catalysts to Watch
XLE lost its 50-day moving average support ($57.44) in early June and posted five consecutive lower weekly closes, with MACD histogram expanding negatively and the XLE/SPY ratio dropping from 0.0803 on June 10 to 0.072 by June 18 — an accelerating relative breakdown versus the broader market.
Why It May Work
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Timeline
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