Our economy and financial markets rely on a well-functioning banking industry.
And just as we saw with the Financial Crisis in 2008, things can go south fast when bank stocks and the banking industry begin to under-perform as the economy slows.
Today, we share a “monthly” chart of the Bank Index (BKX) to highlight a potential warning sign to bank investors, and perhaps all investors! Note that we wrote about this last week as well – read it here.
As you can see, the bank index has reversed lower a couple times over the past 10 years. Both times lead to under-performing bank stocks and one included the coronavirus crash in 2020.
So could we be making another u-turn lower here? While there is plenty of time for September to see BKX turn higher, right now it is breaking down and out of a rising wedge pattern!
In my humble opinion, it might be worth keeping a close eye on bank index this month! Stay tuned!!
$BKX Bank Index “monthly” Chart
Note that KimbleCharting is offering a 2 week Free trial to See It Market readers. Just send me an email to services@kimblechartingsolutions.com for details to get set up.
Twitter: @KimbleCharting
The author may have a position in mentioned securities. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
