Are Regional Banks (KRE) Suggesting “Look Out Below” For Stocks?

by Kimble Charting

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.

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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?

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What happens during the next few weeks for KRE should send an important message to banks and the broader market. Stay tuned!