Will Draghi show up at Jackson Hole? Can Draghi shore up European banks? What is Draghi’s true influence per solving Europe’s key challenges?
The U.S. Banking system had a large influence in pulling the broad markets lower during the 2008 financial crisis. Where do Banks stand right now from a pattern perspective and how could their next big move impact the broad markets?
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The Bank Index and the Regional Bank ETF (IAT) are both at or near key falling resistance lines. YTD the banks have reflected relative strength. Markets around the world are facing key falling resistance lines at this time, so the price action of the banks becomes all the more important!
So Goes the banks so goes the broad market? I believe so! Keep a close eye on how the banks handle these resistance lines, regardless of what Draghai says or does!