From the Desk of Steve Strazza @Sstrazza
Due to the recent bank failures, this week has been all about the financial sector and the selling pressure taking place there.
However, the price action for energy stocks has been even worse by some measures.
The Energy Sector SPDR $XLE is on pace to fall -6.8% this week, while the Financials Sector SPDR is only lower by about -5.8%.
When we look at energy futures, the outlook only worsens with crude oil registering its largest weekly loss since trading into negative territory in April 2020.
So, what does this all mean for the bull market in energy?
The sector has been so resilient, showing steady leadership for several years now. Is it all over?
Maybe not, but there is some serious damage that will require immediate repair work.
Let’s take a look at it.