As a follow up to my 9/26/05 post, here is the current chart for the Energy Select Sector SPDR (XLE). Here we see a gap down wipeout big red candle blasting through the 20-day EMA on increased and above average, but not huge volume. This failure confirmation fits the 1, 2, 3 trend reversal pattern of initial break from new highs (8 trading days ago), retest (3-day rally that ended 3 days ago), and failure below the recent low (today’s close below the low of 6 days ago). Here again, we’ll get a rally attempt, which could provide a second or third short entry point (I shorted this on the initial break 8 days ago). Cheers!