bank-smiling-pic

Historically, when strong bull markets have taken place, Banks go along for the ride. Since the summer of 2014, banks have under performed the broad market by around 12%, as the S&P is just a couple of percent from all-time highs. Are banks about to act healthier and put a smile on this sector, which could help the S&P breakout above the 2,150 level?

Below looks at the Bank Index (BKX)

bank-index-bounces-off-new-support-oct-24

CLICK ON CHART TO ENLARGE

Since the lows earlier this year, Banks look like they are forming a bullish ascending triangle. Around a month ago, banks attempted to break above the top of the triangle, then selling pressure came in. Sellers tried to break support line (A) at (1). Selling dried up and buyers can in, creating a reversal pattern (bullish wick) at (1).

Buyers have continued to step into this market, pushing the index higher. Last week the index closed at the highest weekly close at (2), since the lows that took place earlier this year.

The broad market risk on trade wants/needs this index to keep pushing higher!

Full disclosure- Premium Members are owner of this hard hit sector.

 

We Keep You Informed & Confident with Big Picture Chart Patterns & Alerts on Major Market Turning Points

and identify assets that have reached extreme support and resistance levels
and monitor hundreds of assets for breakouts & reversals for you
and identify high probability entry and exists points for you
all from one of America’s Top Chart technicians