Energy stocks can’t carry the entire market alone: Chart of the Day

This chart shows what’s happening beneath the stock market’s surface: Leadership keeps rotating.

I must quote the godfather of technical analysis, Ralph Acampora, who famously said, “Rotation is the lifeblood of a bull market.” In that sense, this is exactly what a healthy bull market is supposed to do.

Software, tracked here by the iShares Expanded Tech-Software Sector ETF (IGV), peaked on Sept. 22 and never got its groove back. Meanwhile, healthcare, via the Health Care Select Sector SPDR Fund (XLV), took over around that market turn and had its day in the sun — then chopped sideways for three months before fading too.

Energy was the late arrival. The Energy Select Sector SPDR Fund (XLE) did not really wake up until the start of 2026. But once it cleared $50 — and broke out of a two-decade base — it was off to the races.

That rotation has been healthy overall. But in March, energy is the only sector that has really held up — and it is not big enough to carry the entire S&P 500 (^GSPC) on its own.

Eventually, new leaders will need to step up. The question is how much deeper — and how much longer — this broad sell-off runs before they do.

Jared Blikre is the global markets and data editor for Yahoo Finance. Follow him on X at @SPYJared or email him at jaredblikre@yahooinc.com.

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