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FLASH INTRADAY: Watch XLE (Energy proxy) over the next day or two. '13' buy countdown triggered on daily DeMark combo v1 (relative to S&P 500)

STRATEGY: XLE '13' buy countdown triggered today... 2 prior instances in 2020
Energy stocks have struggled since mid-March and month to date are down ~4% vs a 4% gain in the S&P 500.  So the relative performance has been devastating, considering we are only mid-month.

But the speed and persistence of the Energy underperformance have created a potentially attractive buy set-up based on the DeMark Analytics system.  Recall, DeMark is a counter-trading system, so if investors get too negative on a stock, this triggers a "buy countdown" which in a DeMark system, means imminent reversal.

- XLE Daily DeMark (relative to S&P 500) count is now a '13' as highlighted below
- based on daily, combo v1b.

- This '13' was also seen July 9, 2020, and Sept 28, 2020

In both precedent instances, XLE made a bottom almost immediately and subsequently rallied, in phases.

This is also true of OIH, but we analyze XLE here





Below is the actual price chart of XLE and I marked in 'purple' those two prior instances.

- July 9, 2020, XLE started an immediate rally from $34 to $40, or >10% rally
- Sept 28, 2020, XLE had an immediate rally, which failed and made an "undercut" low to $27 from $29
- But then embarked on a rally to $56, or 100% gain

So, this is a DeMark development to keep an eye on.
- XLE should reverse within 4 trading days or needs to respond by Monday next week
- If not, this is a 'recycled' or broken '13'

Given the divergence with Oil (oil is up) and given XLE is oversold and given the economic data is strengthening, this is likely a valid signal.


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