Last Thursday we had the benefit of being able to examine some MONTHLY candlesticks. In general the longer the timeframe the more meaningful. The most powerful sector by far in the first half of 2022 was energy and that had a big impact, many felt a negative way on the consumer in a myriad of ways. Not just filling up at the pump, but the cost of the goods they purchased was also boosted as a result of the inflated PRICE. Below is the chart of the XLE and its MONTHLY bearish engulfing candle may be providing some relief. Round number theory came into play with a precise bounce off the very round 20 figure in March 2020, and the very next month recorded a bullish piercing line candle. Now the tricky part is the range between those two months was very large, like the present engulfing candle in June. The XLE doubled to a high above 40 just 4 months later until finally, a bullish morning star pattern was complete in November. The 20-point range we saw in June could see some wild swings and I would not be surprised to see it trade up to the middle of that range into the 80s, but I think June pretty much said energy inflation will be easing heading into the back half of 2022.