S&P 500 Energy Index Signals Drop to 660 if 820 Breaks

3 articles · Updated · Reuters · May 12

872.41 — the S&P 500 energy index is forming a head-and-shoulders top, a bearish chart pattern that would be confirmed by a decisive break below 820.
660 is the technical downside target if that level fails, a move that would wipe out all of the sector's gains this year after a volatile rally tied partly to higher oil prices during the Iran war.
976.91 marks the pattern's head, with shoulders at 883.48 and 913.79; a climb back above roughly 914 would weaken the bearish case and revive odds of a retest of the March high near 977.
Exxon Mobil and Chevron account for nearly half the sector, and the index has recently tracked broader equity rotation and company-specific moves more than crude prices, complicating the oil-stock link.

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