Oil stocks are at a critical juncture

One of the biggest casualties of the recent stock market decline has been energy stocks. One may even argue that they are the culprit, or at least one of many. This includes oil stocks. Using the XOI (now the NYSE ARCA Oil & Gas Index) as a measuring stick, we can see how much damage has been done to these stocks, both recently and over the past year. This is especially true relative to the major stock averages which began the recent plunge not far from their respective 52-week highs.
At present, the XOI finds itself in a very interesting spot from a longer-term perspective. Looking at the chart, you can see why we say that. (more)