The chart above looks at the Bank Index over the past 13-years. In 2007 at (1), the index created a topping pattern, prior to the financial crisis and its 80% decline over the next couple of years.

The rally in banks over the past 7-years inside of rising channel (2) has it back at the height of the right shoulder of the topping pattern at (1) as well as at the top of the rising channel at (3). As it was hitting the both price points at (3) a couple of weeks ago, a reversal pattern took place.

Currently the decline in banks has it testing rising support at (4), with momentum (not shown) at very lofty levels. Bank bulls or owners of XLF, BAC, C, JPM WFS GS and bulls in the broad market do not want banks to peak here nor break rising support at (4).

The Power of the Pattern is of the opinion we are at very important price points in many markets.

We are offering a 30-day Free trial to our readers.  Just send an email to [email protected] for details to get set up.




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