Banks: About To Save The Market?
Chris Kimble | Apr 08, 2014 10:51AM ET
If you own Bio-Tech or Social-Media stocks of late, its been a bumpy ride (-15%+). However, if you own the banks, they've held up well compared to some hard-hit sectors. The above charts reflect that the Bank Index and Regional Bank ETF (KRE) have had quality rallies over the past couple of years.
Pushed To Resistance
And those rallies have pushed both to Fibonacci resistance levels tied to the Financial crisis in 2009. The Bank index stands at the 50% Fib level with momentum at lofty levels.
So goes the banks, so goes the broad market? Often that's very true. If Banks break out here, it could help pull the broad markets higher. These leaders find themselves at important levels with momentum over bought.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.