Energy Select Sector SPDR: Key Turning Points
Pivot Points for Energy Select Sector SPDR: The pivot high is set at $86.04 and the pivot low at $84.81, calculated using the DeMark method.
Market Sentiment Indicators: A breakout above the pivot high is considered bullish, while a breakdown below the pivot low is viewed as bearish.
Technical Analysis Method: The DeMark method is used to determine these pivot points, indicating potential market movements.
Timeframe of Data: The information is based on data available up to October 2023.
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Energy Sector Forecast: The energy sector is expected to experience tempered performance in 2026, with analysts predicting a global oil surplus and weaker demand following a modest growth of 8.7% in 2025.
Mixed Earnings Reports: Major oil companies are reporting mixed earnings, with Chevron beating earnings per share expectations but missing revenue forecasts, while ExxonMobil and others show strong year-to-date gains despite some misses.
Future Growth Projections: Chevron forecasts a compound annual growth rate of around 10% for cash flow from operations by 2026, while ConocoPhillips and Shell aim to reduce operating costs significantly this year.
Market Trends and Investment Opportunities: The energy sector remains favorable for investors, with recommendations for stocks like ExxonMobil and Chevron, as well as ETFs that provide exposure to top natural gas and oil producers.
- Market Opportunities: Investors may find renewed opportunities in previously recommended stocks from healthcare, oil services, and consumer staples sectors.
- Signs of Momentum: These stocks are showing signs of renewed momentum, suggesting potential upside for investors.
- Sector Rotation: The leadership in these sectors has already rotated, indicating a shift in market dynamics.
- Investor Consideration: Investors are encouraged to take a fresh look at these stocks as they may present attractive investment options.
Power Grid Outages: PJM Interconnection reported nearly 21 gigawatts of generation outages affecting around 67 million people, prompting a pre-emergency order to curb demand as domestic gas demand is projected to reach 156 billion cubic feet per day this week.
Natural Gas Market Trends: U.S. natural gas futures surged over 29% amid production disruptions caused by an Arctic blast, with benchmark prices at Henry Hub rising to $6.8 per million British thermal units, the highest since December 2022.
European Gas Import Regulations: The European Union has adopted regulations to phase out imports of Russian pipeline gas and liquefied natural gas as part of its REPowerEU strategy, with a full prohibition on LNG imports set for early 2027.
Market Reactions: ProShares UltraShort Bloomberg Natural Gas ETF (KOLD) saw a decline of over 15%, while retail sentiment remained extremely bullish, indicating strong market interest despite falling natural gas prices.

Severe Winter Storm Impact: A significant winter storm continues to affect the Midwest and Northeast, causing heavy icing and power outages for over 860,000 homes, particularly in Tennessee and Mississippi.
Natural Gas Price Surge: Natural gas futures have jumped nearly 16% due to increased demand for heating fuel amid the cold weather, with prices reaching $6.09 per unit.
Casualties and Disruptions: The storm has resulted in at least three fatalities and widespread disruptions, including canceled flights and winter alerts affecting approximately 185 million people.
Market Reactions: Retail sentiment on natural gas stocks has fluctuated, with BOIL shares rising 8.2% while KOLD shares fell 7.2%, reflecting the volatile market conditions driven by the storm's impact.








