Energy Select Sector SPDR (ETF) (NYSEARCA:XLE) Is Leading

Today the markets are seeing some ugly declines and to the average investor, there seems to be no bottom in sight. Everyone is looking at Ebola as the culprit for spooking the markets. While this might be true, I am looking at Energy Select Sector SPDR (ETF) (NYSEARCA:XLE) as the reason this market has seen a dramatic fall recently. I wrote an article a couple months ago as seen here, discussing how the Energy Select Sector SPDR (ETF) (NYSEARCA:XLE) had diverged from the overall market and was talking to us. While this market might have some more downside to it, I am looking at the weekly chart of Energy Select Sector SPDR (ETF) (NYSEARCA:XLE), as you can see, we are into a very good support area here around $77.25. In my opinion, it is the XLE chart that will dictate the market direction, not Ebola.

If you are looking for market guidance and direction, make sure it comes from the Elite Round Table.Our FREE market emails contain information that can actually make you money for both short term trading and long term investing.

Parm Mann
Elite Round Table
Follow me on twitter: @ParmMannTrader