Tuesday, April 8, 2014

Banks about to “pull up” the broad market?

by Chris Kimble


If you own Bio Tech or Social Media stocks of late, its been a bumpy ride. However, if you own the banks they have held up well compared to some hard hit sectors. The above charts reflect that the Bank Index and Regional Bank ETF (KRE) have had quality rallies over the past couple of years.

These rallies have pushed both of these to Fibonacci resistance levels tied to the Financial crisis in 2009. The Bank index stands at the 50% Fib level with momentum at lofty levels.

So goes the banks, so goes the broad market? Often time this is very true. If Banks would break out here, it could help pull the broad markets higher. These leaders find themselves at important levels with momentum over bought.

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