Banks have lagged the broad market since the first of September.  Of late, the banks have reflected relative strength.  Bank Index is up over 3% the last two days, up 10% this month!  Many are concerned about the banks, yet from a price perspecitve, they have to be respected in many ways should they breakout at (2) in the chart above.  A bank breakout should signal that the 500 index will take out Fibonacci resistance.

Game Plan…Buy XLF with a tight stop of just 3%.

P.S.  Russell 2000 (IWM) continues to reflect positive relative strength!

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past