With WTIC Oil prices settling lower by 3.9% @ $57.99, energy stocks were under pressure. The oil/gas drillers of Transocean (RIG) and Seadrill (SDRL) settled lower by a very significant -5.9% and -3.9% respectively. Near term outlook is bearish.. with Oil set to decline to the 56/54s.
Energy stocks are closely tied to price action in Oil.
With WTIC having ramped from the March low of $42s to the recent high of $62.58, a retrace of the bounce is very natural. First support is the weekly 10MA... currently around $55.
*I have high confidence in RIG and SDRL across the longer term, but both look highly vulnerable across the summer/early autumn.