From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley
We’ve pounded the table on the weakness in energy these past few days, so why stop now? When we find ourselves hammering the same topic time and again, there’s usually a very good reason.
As far as energy goes, there’s been a lot of damage done to the space this week.
Breadth fell off a cliff and was not supporting the new highs for energy stocks.
The relative trends have gotten clobbered, as energy has been among the worst-performing sectors over the near term.
And, just today, we’re seeing failed breakouts in energy sector ETFs across the board.
Since we’ve already written about these themes, let’s dive in and see what energy futures themselves have to say about the situation.
Are futures resilient despite these bearish developments?
Or are there cautionary signs in the commodities market that are confirming the weakness in the stock market?
Let’s find out. [Read more…]