As we’ve written several times before, the banks / financials are an important sector in the stock market and economy.
So it goes without saying that when bank stocks are in an up-trend and/or performing in-line, that it’s a good indicator for the broader stock market and economy.
Well, that’s not the case in today’s chart – a “weekly” chart of the Regional Banks (KRE).
As you can see, the banks have been weak and are facing dual resistance test at (2). Can the banks play catch-up and mount a breakout rally? Or will they remain weak and turn lower?
What happens during the next few weeks for KRE should send an important message to banks and the broader market. Stay tuned!