ENERGY SPDR NEARS TEST OF JUNE HIGH -- A NUMBER OF INDIVIDUAL STOCKS ARE ALSO TESTING THAT CHART BARRIER -- CRUDE OIL PRICES CONTINUE TO CLIMB

ENERGY SPDR NEARS TEST OF JUNE HIGH...Energy stocks continue to show both absolute and relative strength.   They're leading the market higher today, and have been the market's strongest sector over the last three months.   And they're approaching an important test.   The daily bars in Chart 1 show the Energy SPDR (XLE) nearing a test of their June high around 45.00.    The solid line overlaid on the price bars shows its relative strength ratio rising since November.   Rising energy prices are the driving force behind stronger energy shares.   A number of today's XLE leaders are also nearing a test of their summer highs.  One of them has already cleared that chart barrier.

A FEW POTENTIAL BREAKOUTS... Some of today's XLE leaders are shown below.   Chart 2 shows Occidental Petroleum (OXY) right up against its June high.  In fact, it's trading slightly above the June intra-day high at 24.45.  That could be an upside breakout in the making.   Chart 3 shows Marathon Oil (MRO) approaching a similar test.   Chart 4 shows Exxon Mobil (XOM) rising today to the highest level since June.   That puts it in position to challenge its June high near 53 as well.   Chart 5 shows Schlumberger (SLB) having already cleared its summer high.  Crude oil prices are also rising.

OIL PRICES CLIMB... Energy shares are drawing their strength from rising energy prices, and crude oil in particular.   Chart 6 shows the United States Oil Fund (USO) climbing to the highest level in ten months.   WTIC light crude oil is trading above $57 for the first time in a year.   That's helping keep the energy rally going.