“XLE is the worst performing S&P 500 sector over the past 30 & 90 days. This decline has taken it down to support of this rising channel, that has been in place since late 2012,” notes Chris Kimble of Kimble Charting Solutions.
Of course, it would help the case of energy ETFs if the dollar weakens. Because commodities, including oil, are denominated in U.S. dollars, ETFs like XLE make for predictable beneficiaries of weak dollar environments. Investors have been reminded of that fact again this year. [Sector ETFs for Dollar Reversion]
XLE Chart
Chart Courtesy: Kimble Charting Solutions
ETF Trends editorial team contributed to this post.