Banks Faltering
Gary S. Morrow | Sep 22, 2020 12:26PM ET
Following a failed breakout earlier this month the BKX Index remained in a tight range. Yesterday, key support near the August low was taken out. Today, the loses are extending as the BKX stretches its pullback from this month’s high to 10%. From the June highs, the index is now off 22% as it continues to be a major laggard. More downside is likely ahead.
We expect the BKX to dip down to initial support near the $69.00 area. This key gap support zone held the July lows after a very steep sell off from the June highs. If this area fails to hold a trip back down the to 2020 lows may be on the way.
Top Five BKX Holdings:
U.S. Bancorp (NYSE:USB_pa): 8.24%
Bank of America Corp (NYSE:BAC): 8.22%
JPMorgan Chase & Co (NYSE:JPM): 7.93%
Citigroup Inc (NYSE:C): 7.43%
Wells Fargo & Company (NYSE:WFC): 7.36%
You can read Gary S. Morrow's original post here .
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