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Market Insights

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Energy Stocks Look Like Technology Did Five Years Ago: Technical Analysis

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2022 has begun with another sharp rotation from growth to value stocks. The SPDR Technology ETF had its biggest weekly drop in over a year, while the SPDR Energy ETF had its biggest gain in even longer.

The SPDR Financial ETF (XLF) also jumped. Price action in the two value sectors (XLE and XLF) seems to resemble Technology at another moment 5-1/2 years ago. The chart below shows XLK between January 2015 and November 2016. Notice how the tech ETF spent more than a year …

For more, please click here to view the related idea and chart analysis on TradingView.

SPDR Energy ETF (XLE), daily chart with selected patterns and indicators, courtesy of TradingView.

About the author

David Russell is VP of Market Intelligence at TradeStation Group. Drawing on two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them apprised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.