XLE gapped down today, which rendered the trade impossible to execute with good return probability. We can indeed see that XLE is now about back to its opening price.
What is however interesting is to see that XLE is bouncing while Oil's EV pattern is still very negative. This means that there is probably an XLE shorting opportunity here - probably tomorrow.
The reason why XLE is up is simply because the S&P is up, pulling XLE up with it. But the 20DMF on the S&P is not that positive while the CTick is very positive. This also means a shorting opportunity: algos are trading a Republican victory.
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