The price of crude oil has been on everyone's mind for weeks and months. We are reminded of it every time we drive past a gas station. It is on the local and national news everywhere, every night. "The national average is... according to AAA."
But markets are discounting mechanisms. They anticipate future events and right now the charts of the ( XLE) , the Energy Select Sector SPDR ETF, and the ( OIH) , VanEck Oil Services ETF, are weakening.
Once stock traders notice this shift we may see the equity averages start a recovery rally for real.
Let's check out the charts of two widely followed ETFs -- XLE and OIH. 
In this daily bar chart of the XLE, below, we can see that prices have broken below the rising 50-day moving average line. Trading volume has been weakening since March. The On-Balance-Volume (OBV) line has rolled over. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profit sell signal.
In this weekly Japanese candlestick chart of XLE, below, we can see a weakening picture. There is an upper shadow above $90. The weekly OBV line has been stalled for more than three months. The MACD oscillator has narrowed towards a take profit sell signal.
In this daily Point and Figure chart of the XLE, below, we can see a downside price target in the $73 area.
In this daily bar chart of the OIH, below, we can see a modest double top pattern with prices poised to break their May lows to break the "neckline". Prices are below the now declining 50-day moving average line and coming up quickly to the 200-day line which intersects around $235. The OBV line has turned lower and the MACD is crossed to the downside.
In this weekly Japanese candlestick chart of OIH, below, we see a weak picture. Prices are pointed down for a test of the 40-week moving average line around $240. The OBV line is topping and the MACD oscillator has been weakening for about three months.
In this daily Point and Figure chart of OIH, below, we can see a potential downside price target in the $174 area.
Bottom line strategy: Is it demand destruction? Is it unwinding overbought conditions? Is there more oil supply? I don't care what the cause is but I do care about the effect -- prices. The prices of energy names look toppy and are probably headed for a deeper correction. Traders should review all of their energy holdings and trim their positions.
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