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By ETF Daily News (Reporter)
The left chart above looks at the Bank Index (BKX) over the past 13-years. In 2007, the index diverged with the broad market as it was creating a bearish descending triangle. Once support of the descending triangle broke, selling pressure ramped up. This pattern took place while “interest rates were actually moving higher, which is often good for banks.”
This year the bank index has been diverging from the broad market while forming a bearish descending triangle. As this divergence is taking place, “interest rates are moving higher.”
Banks became a “Canary” at the 2007 highs, sending a caution message to the broad markets before it turned sharply lower. Are banks doing the same thing again this year?
More
The left chart above looks at the Bank Index (BKX) over the past 13-years. In 2007, the index diverged with the broad market as it was creating a bearish descending triangle. Once support of the descending triangle broke, selling pressure ramped up. This pattern took place while “interest rates were actually moving higher, which is often good for banks.”
This year the bank index has been diverging from the broad market while forming a bearish descending triangle. As this divergence is taking place, “interest rates are moving higher.”
Banks became a “Canary” at the 2007 highs, sending a caution message to the broad markets before it turned sharply lower. Are banks doing the same thing again this year?
More