The Energy sector is taking a hit. Take a look at that enormous gap downward on the XLE (Energy Select Sector SPDR). Ouch! Also, the RSI and MACD continue to head lower. Also the RSI is now below 50 and the MACD below its zero line.

This sector is heading for 50 fast. That yellow support line around 50 is the next level to watch to see if it holds or breaks. If it breaks further then shorting energy stocks could be in the cards. A more conservative approach would be to short an energy ETF. (Keep in mind that all short selling is aggressive. There are just different degrees of it. That’s what I’m referring to).