Several factors point to a possible inflection point.
- XLE is in a bigger downtrend
- XLE is now at resistance from a gap-down from November of last year
- So far we had two shooting star like candlesticks indicating rejection of higher prices
- There is a bearish divergence between price plot of XLE and its underlying AD Line.
- XLE is likely to experience a bearish "breadth thrust" soon (see chart below)
- Our trading system generated a short signal on XLE.
XLE charts are here and here