February 17, 2023, 7:02 pm EST
Breakdown of the Energy
The stock market has been in a convergence pattern since last December as we mentioned on 02/09. We are still waiting for the resolution in order to judge its next direction.
In the meantime, we saw a breakdown from the energy sector as shown in the featured index table. Obviously, energy stocks suffered a significant distribution of -3.5% loss according to its ETF (XLE). Its price and volume pattern gave hints for overall weakness and potential downtrend.
Therefore, it should be essential to monitor the entire commodity area as well.
Other than this phenomenon, general markets did not show much information about its intention.
Farming equipment Deere & Co (DE) was up +7% after the earnings report which seemed to be bullish. Another engine maker Cummins (CMI) also approached its 52-week high which got our attention.