Through the end of last week’s action, energy continued its ascension up the NDW DALI Sector Rankings, moving into the third position for the first time since December 2023.

Through the end of last week’s action, energy continued its ascension up the NDW DALI Sector Rankings, moving into the third position for the first time since December 2023. Last week’s action (2/6 -2/13) brought a 16-tally signal increase for energy with most of the signals coming from the likes of communication services and financials, as they fell to fifth and sixth in the rankings. Energy is the most improved sector within the NDW DALI Sector Rankings so far in 2026 with an increase of 71 signals, and the next closet being industrials with a 25-signal increase. From here, if energy were to move into either of the top two spots, it would mark the first time since January 2023.

Last week’s rise in relative strength for energy was derived from continued upside action within energy stocks and funds. The State Street Energy Select Sector SPDR Fund (XLE) improved on recent all-time chart highs by rallying to $55, continuing higher in its current column of Xs that included a third buy signal by in mid-January. The fund has been on a buy signal and in a positive trend chart since December last year and has shown positive near-term market relative strength against the S&P 500 Equal Weight Index (SPXEWI) since January this year. The recent rally has brought the market RS chart to within one box of an RS buy signal for the first time since moving to an RS sell signal in January 2024. From here,

Through Friday’s close (2/13), XLE is up more than 20%, and the recent push higher has brought the ETF above the top of the 10-week trading band and to its most overbought level since April 2024. From here, investors will look for a pullback and consolidation in the lower $50s before considering. Prior resistance in the upper $40 range may be seen as near-term support, while additional can be found in the $45 range.