The energy sector extended its remarkable momentum this week, recording a 14th consecutive weekly gain. Participation has been notably strong, with 77% of S&P 500 energy stocks reaching 52-week highs on Friday—a new cycle peak.
Historically, such breadth is rare, ranking as the eighth-highest reading on record. The only stronger instances occurred near the onset of one of the longest energy bull markets, spanning October 2004 through September 2005, when breakout participation ranged from 78% to 88%, underscoring the exceptional nature of the current surge.
How long can energy sector momentum persist? The answer likely hinges on whether crude oil continues to track the 1990 Gulf War trajectory, which has shown remarkable alignment so far.
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