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I'll be the first to admit that I'm not a technician, but the Dow Oil & Gas Index (^DJUSEN) clearly has commitment issues with 500. Since April, the energy sector has made several attempts to break out above 500, but it's failed each time. Yesterday, the index closed at 501.09, its third-highest close ever. But sure enough, it's back down again today.

As I wrote before, the energy sector is the least-correlated sector with the rest of the market. While the rest of the market has fairly low volatility, the energy stocks continue to move around a lot. What’s interesting about this latest move up is that it’s happened as oil has moved lower.

Posted by edelfenbein at November 22, 2006 10:45 AM