The Energy sector of the S&P 500 added to Monday’s rally yesterday, bringing its two-day gain to 5.74%. With Technology declining over the same stretch, Energy widened its YTD lead over the sector to 13.8 percentage points. Tech had briefly closed the gap to less than 5 percentage points last Friday.
Energy has led all ten other sectors since July 7, when it took the top spot back from Industrials following a four-day interruption. Energy has now spent 137 trading days atop the leaderboard, accounting for roughly 90% of the year. Materials, Industrials, and Technology have combined to lead on just 15 days.
Following Monday’s 4.6% rally, Energy added another 1.1% yesterday to complete its best two-day stretch since October 5, 2022, almost four years ago. The two-day gain ending on that date was 10.4%, the largest of the last five years.
The sector has now broken above the trendline connecting its lower highs since March. It also moves Energy into overbought territory, and less than 0.1 standard deviation from extremely overbought levels. The last time Energy closed more than two standard deviations above its 50-DMA was March 27, the date of its last record high.
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