From All Star Charts:
A little bit over a month ago, we pointed to the high likelihood of Energy breaking out on a relative basis.
That consolidation that we had seen since September was just too tight and too clean for us to ignore. In addition, momentum as measured by RSI hadn't reached oversold conditions since mid-summer. These bullish characteristics signaled to us that a breakout was probably coming.
Since then, we have seen $XLE relative to the S&P 500 get above its downtrend line and hold above what are now rising 50 and 200 day moving averages (blue & red dotted lines). At this point, the price action is flirting with the September highs and remains in full-fledged bull mode...
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