Chart Talk {09.22.15-Energy}

While I don't know if this is the bottom in energy names, the pattern here is suggestive enough for us to at least pay attention to what happens when these two lines intersect.  Either energy names will break support or they will break this downward trend line and possible show proof of consolidation of the current region of support.   Just because the index finds a bottom does not necessarily mean that it will begin an immediate recovery.  It is also likely that we'll see a period of basing as the index finds a bottom.  If the past is any guide the stocks in this index will likely start to recover before you see a large uptick in price.  Index would really benefit if oil stabilizes and moves slightly higher.  

Original unannotated chart is from FINVIZ.com.

*Long XLE in client and personal accounts and certain other energy related ETFs.  Please note that these positions can change at any time without notice to our readers.