Energy Update

 Fr the time being XLE (Energy) is simply following the FX correlation (Euro in red), while trying to fill today's gap.

 Here is the danger zone in XLE in yellow, the breakout from a symmetrical triangle, the problem is a breakout from the 2 month consolidation "Should" have produced follow through buying sending XLE quite a bit higher, instead it has been content to trade laterally in the area I consider it be a red line zone and thus most likely, probably a head fake breakout which will eventually trap longs. Also note the declining volume, even after the breakout.

 XLE Hourly sell signal from yesterday.

 3C 1 min showing yesterday's end f day negative divergence sending XLE lower, so far the 1 min is in line with today's price trend, this is largely a function of the FX correlation as there was NO positive divergence to kick off the intraday bounce.

 A 2 min 3C chart shows the more recent trend, very negative at yesterday's highs and leading negative today.

 The 5 min chart shows the exact same thing, so there's good confirmation between the 2 timeframes as each has a different look back period and does not need to produce the same signal unless that signal is valid.

 Longer term on the 15 min chart we see positive divergences marked by white arrows and the area of price accumulation marked with a white box, distribution marked by red arrows and price area marked by a red box. In general, the highs have been distributed and the lows bought as XLE remains in a wide trading range.

 The longer term trend on the 30 min shows that accumulation areas seen on the 15 min chart were actually quite small and didn't even appear on the 30 min hart, suggesting that overall, the balance of money flow throughout this wide range has been heavily skewed toward dumping shares or even selling them short.

On a daily timeframe, the last good bout of accumulation was back in the summer of 2010, since then we have seen some heavy distribution in XLE.