XLE is poised to make new highs

XLE looks poised to continue its uptrend and make a new regional high. It's currently being supported by higher crude prices and a dollar which looks to be losing footing on its previous bounce. I personally think that production cuts will eventually cause supply shocks when demand will pick up. It will take sometime for the oil markets to reach equilibrium, thrusting prices higher. There is evidence from recent reports in China and the U.S that inventories are rapidly dropping. Energy will continue to outperform in the near terrm, although it is susceptible to the equity markets conditions.