Energy Stocks Fuel Market Rally
This morning, the major stock indexes are all surging higher on the session. Most leading stock sectors are participating in the move higher making this a broad based rally. The one sector that every trader and investor should follow closely is the energy sector. The energy sector accounts for roughly 16.0 percent of the S&P 500 Index. Today, almost every leading energy stock is trading higher on the day helping to fuel the rally in the major stock indexes.
Traders can easily follow the Energy Select Sector SPDR (ETF) (NYSEARCA:XLE) and see that it is trading higher by $1.61 to $70.52 a share. When the XLE climbs most every leading energy stock will follow. While the XLE will give traders a broad sense of the sector the leading stock is Exxon Mobil Corp (NYSE: XOM). This stock is surging higher by $1.59 to $88.01 a share. Short term traders can watch for intra-day resistance around the $88.56, and $89.00 levels. The daily chart of XOM has been very oversold recently so short covering could push the energy stocks even higher in the near term.
Some other leading energy stocks that are climbing higher today include Chevron Corp (NYSE: CVX), Devon Energy Corp (NYSE: DVN), BP plc (NYSE: BP), and ConocoPhillips (NYSE: COP). All of these stocks will generally trade higher when the U.S. Dollar Index declines or trades lower, that is certainly the case at the start of the day. Should the U.S. Dollar Index somehow catch a bid higher the energy sector could pullback from the early morning session highs.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.