From Hero to SLoB

There can be no doubt that energy stocks, despite not making new lows (for OIH, XLE) on this latest downdraft in the market, still have plenty of work to do to cement anything remotely close to a durable bottom. 

Nonetheless, the resilience in heavyweights like XOM should not be dismissed by bears. 

Beyond that, another heavy weighting in both the OIH and XLE ETFs is Schlumberger (or "SLoB," as it is known, due to its SLB ticker symbol). On the daily chart for SLB, below, if bulls can recapture $70 soon it adds credence to a potential inverse head and shoulders bottom spanning nearly two months. 

Of course, it would help to see the likes of CHK stabilize for energy stocks, and HYG JNK print bottoms, too. 

But the mega caps are trying to hold up their end of the bargain for energy bulls. And I still see the SLoB marking as good a tell as any for the group, in terms of whether this bottom proves true or is yet another in a long line of tidbits adding false hope to a bitter bull cocktail.