Energy names have continued their tear off the wave 4 low in August, and many may be trying to break out in iii of 5 now. XOP was up over 11% this week off the retrace for ii. CDEV was up over 16% and APA +19%.
We also called for the drop into the low Monday in broad markets perfectly as well as the bounce specifically with the RSP as the equal weight version of the S&P that we feel present a smoother and more accurate view of the broad market at times. Not only did we call for a >-4% in the c of (a) but also for the (b) wave bounce, which came RIGHT to the 61.8% retrace for a gain off the Monday low of 4%!
See charts below on XOP and RSP.