This afternoon, it is the beaten down energy sector that is leading the the major stock market indexes higher. The energy stocks topped out on May 2, 2011 and declined into yesterday’s close. These key market leaders are finally staging a sharp bounce today. The energy sector accounts for 16.0 percent of the S&P 500 Index.
Some of the leading energy stocks that are trading higher this afternoon include ConocoPhillips (NYSE:COP), Chevron Corp. (NYSE:CVX), and Noble Energy Inc. (NYSE:NBL). All of these leading stocks in the sector have similar patterns on the daily charts. This is an options expiration week and often many of the beaten down stock will stage good bounces if enough small retail options traders bought puts on the leaders. In all fairness, many of the leading energy stocks did have daily chart support and were due for a bounce.