Energy Stocks Teeter: 3.5% Drop Looms Post-Surge

Energy stocks are showing signs of an impending reversal in April, with historical data indicating a potential 3.5% decline in the S&P 500 Energy Index following overbought signals.
Despite being undervalued previously, the energy sector has now become the most overbought sector, with a 15% increase in stocks since January 18 driven by rising oil prices and increased demand due to sanctions on Russia.
Valero and Marathon have seen significant gains recently, with Valero reaching a record high after 10 consecutive days of increases, despite limited news driving the surge. $S&P 500 Index(.SPX.US)$ $Nasdaq Composite Index(.IXIC.US)$ $Dow Jones Industrial Average(.DJI.US)$ $Invesco QQQ Trust(QQQ.US)$ $SPDR S&P 500 ETF(SPY.US)$