$XLE
Right now the setup is quite bullish. It broke out and keeps going without slowing down.
There are rumors in the background about a comprehensive deal between the U.S. and Russia, and if this ends with sanctions being loosened, XLE can face near term selling pressure.
Right now, energy markets are expecting a supply surplus for 2026. If a deal happens and sanctions on Russian oil/gas are lifted, Russia can supply global markets (especially Western markets) much more easily and in higher volumes. Extra Russian supply entering a market that’s already expected to be well supplied can push Br