The main oil & gas ETFs that I regularly follow, XLE, XOP, & XES are all at or near support/price targets & offer objective long entries for either a quick bounce trade off of those levels or potential entries on longer-term swing trades as well as objective levels to book profits on shorts taken at any of the recently highlighted objective entries (resistance and/or support breaks) last month.
Whether or not the energy stocks bounce here & how far, if so, will likely depend on whether or not crude oil goes on to take out today’s lows (first target on today’s earlier short trade following the 60-minute rising wedge breakdown) or continues to bounce off the tag & brief momo-overshoot of the 61.87 target/support. /CL is currently trading at the bounce target posted earlier today.
Today’s earlier slide in /ES stopped cold just above the 4100ish support with a sell signal still pending a solid break below it. How /ES trades from here could impact the energy stocks as well (red scenario/breakdown soon most likely IMO).
Bottom line: Both crude & the S&P 500 hit & have (so far) held above support today. As such, don’t get married to a bounce/long trade in the energy stocks if /ES & /NQ take out today’s lows with conviction as the 3 ETFs above will likely continue down to the next support levels.