Technical Screens found trouble in the energy sector.Looking at the iShares Dow Jones U.S. Oil & Gas Exploration & Production Index Fund (IEO, [stock IEO]) from strictly a technical viewpoint the index broke below the major support area of $58.35 and opened a bearish gap on Monday the 14^th.

Moving averages are reversing to the downside with the Relative Strength Indicator (RSI)  flipping and moving from the buy position suggesting another leg down in the coming trading sessions.

Bottom Line: Traders looking to catch the downside move that the technicals are suggesting can consider selling short IEO $57.25 - $57.00 with a stop loss set at $60.05 - $60.25 with a target at $52.50ish.

The investment seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Select Oil Exploration & Production Index. The fund invests at least 90% of assets in securities of the underlying index and in depositary receipts representing securities of the index. The index measures the performance of the oil exploration and production sub-sector of the U.S. equity market. It includes companies that are engaged in the exploration for and extraction, production, refining, and supply of oil and gas products. The fund is non-diversified.