It goes without saying that the health of the banks are important to the economy.
And this also carries over to the stock market.
When the banks are moving higher, it’s a bullish indicator for the broad market.
In today’s chart, we look at the SPDR S&P Bank ETF (KBE).
As you can see below, selling pressure has come into play just as KBE was attempting to breakout above a bull flag pattern.
This weakness has taken the Bank ETF (KBE) from a bullish stance to a cautious one. KBE has now fallen below its near-term uptrend line and back into its 3 year falling channel.
Continued selling will send a bearish message to the broader market (and economy). Stay tuned!
$KBE Bank ETF Chart
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