Bank stocks went to sleep in February and when they woke up they were down over 30 percent (using the $BKX KBW Bank Index).
This bank index is made up of several regional banks as well, so it really has a pulse on the financial situation in America.
And right now, it’s not good.
BUT, that could change is bulls step up to the plate. The bank index is attempting to form a bottoming pattern and what happens next will be important!
Note that the following MarketSmith charts are built with Investors Business Daily’s product suite.
I am an Investors Business Daily (IBD) partner and promote the use of their products. The entire platform offers a good mix of tools, education, and technical and fundamental data.
$BKX KBW Bank Index Chart
As you can see, the bank index is trying to bottom. A breakout over $86 with a buying thrust (heavy volume) could see a move back to the falling 200-day moving average at $195.
BUT… if weakness continues, then a retest of the lows may occur and likely broad market weakness. Best to stay tuned!
Twitter: @andrewnyquist
The author may have a position in mentioned securities at the time of publication. 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.
