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So Goes the Banks, So Goes the Broad Market? Well… this is not a perfect analogy, yet more often than not, what banks do (strong or weak) does seem to have an important impact on the broad markets.
The above 3-pack reflects that Bank of America, JP Morgan and Goldman Sachs have all broken below 2-year rising support lines, while the broad markets have not.
The Power of the Pattern would suggest to keep a close eye on these key financial stocks to see if any further weakness takes place and if it starts to impact the S&P 500.
Premium members established positions in the Financial industry due to support breaks and weakness in this sector.