Bank Stocks Are Trying To Breakout
Chris Kimble | Aug 29, 2016 01:59PM ET
During the last 10 years, banks have trailed the broad market. In fact, we noted last week that since their highs in 2007, banks have under performed the S&P 500 by nearly 77%. Is that under performance about to end?
Looking back, Financial ETF XLF appears to have been forming a multi-year pennant pattern over the past decade.
XLF so far has created a series of higher lows since 2009 and has created a series of lower highs since 2007.
At this time, XLF is testing breakout levels at (2), with two other key breakout levels coming into play. The 2015 highs around the $25.43 level is the highest of these breakout price zones.
For the broad market to have success taking out the resistance zone around 2,150 in the S&P 500, it wants/needs financials to breakout at (2).
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