Since the first of this year, banks didn’t have much to brag about, as they lagged the broad market to the upside. While lagging, they potentially built a base that could reward the owners of banks for a while going forward.
Below looks at the Bank Index (BKX) over the past 6-years-
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Potential that the sideways choppy action in the BKX index this year was an upper-level base to spring higher off of.
This week the BKX index broke out to the upside at (1), which is bullish price action for this key sector.