MAP: Energy sector triggers overbought signal (5/15/2018)
Our MAP ratio for the Energy sector triggered an overbought signal. Looking back at history, these signals have indicated extensive institutional buying, which is unsustainable. We expect the Energy sector to pullback and bearish action is ahead.
A couple of points of reference:
A couple of points of reference:
- The average 6-week return for the Energy sector post the signal is -4.21%.
- The last time we had this signal was on 1/17/18 and XLE fell 13.47.% three weeks later (Feb 8th).
