How Did the Energy Sector Lead SPY’s Movement?



Energy sector topped SPY

All of the sectors of the SPDR S&P 500 ETF (SPY) ended in positive territory on February 22, 2016. The rise in crude oil prices is the main driver for this performance. It created positive sentiment in the equity market. As we already discussed, the speculation of a fall in the US shale output in 2016 and 2017 drove crude oil’s movement. The energy sector (XLE) posted the biggest gain of 2.6% on that day. Major energy stocks such as Chevron (CVX), Occidental Petroleum (OXY), and Chesapeake Energy (CHK) gained 2.7%, 2.0%, and 19.5%, respectively, on that day.

The energy sector ETF (XLE) was trading 6.8% below its 100-day moving average as of February 22, 2016. In the past three months, the energy sector was trading below its 100-day moving average. XLE was 16.4% above its 52-week low as of February 22, 2016.

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Consumer staples contributed the least to SPY

The consumer staples sector provided the lowest return of 0.49% to SPY’s performance. However, other sectors like the materials sector (XLB), industrial sector (XLI), and Consumer Discretionary sector (XLY) provided returns of 1.91%, 1.70%, and 1.94%, respectively, on that day.

The Consumer Staples ETF (XLP) was trading 2.9% above its 100-day moving average. Since October 1, 2015, the stock has been trading above its 100-day moving average. During the recent sell-off in January, this sector fell marginally to about 2.5%. The S&P 500 Index fell nearly 5.6% in January 2015.

Next, we’ll analyze SPY’s top performers on February 22, 2016.


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