The energy sector makes a run higher in the sector rankings.

Energy has been at the bottom of our sector rankings for nearly two years as the general trend in energy prices has been lower. Crude oil (CL/) prices sit around $60 per barrel, and despite some short-term volatility in the natural gas (NG/) market, its prices are within normal ranges. Focusing on crude oil, it does seem that there is a strong floor in the mid-$50s, which makes sense as producers begin running into trouble if prices fall below that area for an extended period. At the same time, the energy sector is improving in the DALI sector rankings, having gained over 70 signals in its favor since the second half of 2025, the most of any sector. The State Street Energy Select SPDR ETF (XLE) is now one box away from making a new multi-year high and recently entered acceptable fund score territory for the first time in nearly a year. While energy lacks the level of relative strength worthy for investment right now, its improvement is enough to start thinking about exposure if it continues. XLE is up nearly 6.50% so far in 2026.

Within the traditional energy sector, there is one area that stands out: services. The VanEck Oil Services ETF (OIH) has gained roughly 15% this year and has an acceptable fund score of 4.24. With Wednesday’s action, OIH is trading at the top of its ten-week trading band, so it may slow down over the next few weeks while it normalizes. Nonetheless, the strong performance to start the year, solid fund score, and six consecutive buy signals make it a considerable option if the broader energy sector continues to improve.