In one of the most significant divergences in recent market history, energy stocks have continued to soar along with the Dow and S&P 500 even as crude oil has plunged:

Click to enlarge

WTI Crude vs. XOM (Exxon Mobil) vs. XLE (Energy SPDR)

WTI_vs._XLE_vs._XOM

Since the late-August Syria crisis West-Texas intermediate crude oil is down well over 10% while XLE and XOM are each up 8% and 10% respectively - a truly stunning divergence!

Large cap energy stocks are flashing red warning lights on multiple time frames:

XLE Weekly

XLE_Weekly_11.18.2013

17-month rising wedge which has consistently tested the top rail (upper trendline) during the past several weeks.

XLE Daily

XLE_Daily_11.18.2013

Potential for a false breakout to fresh all-time highs along with today's large bearish engulfing candlestick.

XLE Daily Bearish Momentum and Force Divergences

XLE_Daily_force_index

Shrewd investors would do well to take note and significantly reduce long exposure to large cap energy names.