The energy sector has gone from worst to first.
After trailing the S&P 500’s other major stock groups in 2020, energy has emerged as a leader this year, far outperforming its counterparts with a 25% gain. It’s also the top performer this month, up nearly 21%.
The sharp reversal has “caught a lot of people by surprise,” Craig Johnson, senior technical research analyst at Piper Sandler, told CNBC’s “Trading Nation” on Friday.
Now, they’re trying to figure out whether the run is for real, he said.
“If we come back and we look at a chart of, say, the XLE, it’s at a very interesting inflection point,” he said, referring to the Energy Select Sector SPDR Fund, which tracks the group.
“You’ve made a…