On the 5 year chart, notice we are still in a very strong uptrend. The index rose from 2005-2005, consolidated in 2006 and then continued rallying.
On the 1 year chart notice we have the possibility of a diamond top forming (although the artists skills are very much in question).
On the SMA chart, notice the following:
-- Prices are above the 200 day SMA -- indicating we're in bull market territory.
-- The 200 day SMA is still increasing.
-- The 20 and 20 day SMA are both moving higher and have recently crossed over the 50 day SMA.
My guess is we see energy consolidate but not have much of a sell-off. However, if there is a big drop in oil, all bets are off.
