11.8 C
New York
Saturday, November 2, 2024

Banks Acting Like They Did In 2007! Banking Problem Part II underway?

Courtesy of Chris Kimble.

Is the Banking sector sending a message that weaker economic times are ahead for the U.S. economy? Possible!

This chart looks at the Banking Index (BKX) over the past 25-years. It 2007 the index broke 11-year rising support and its 1-year moving average at (1). Once the index broke long-term support and the moving average, the banking crisis was underway, as the index declined over 80% in less than 2-years.

The index rally over the past few years, took it back to 2007 highs, where a double top looks to have formed earlier this year. The weakness of late has the index breaking 9-year rising support and its 1-year moving average at (2).

The ole saying “So Goes The Banks, So Goes The Broad Market” comes to mind when looking at this chart.

Keep a close eye on the banking index going forward friends! They have sent important messages to the broad markets in the past and odds are high they will do it again!

To become a member of Kimble Charting Solutions, click here.

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments

Stay Connected

156,533FansLike
396,312FollowersFollow
2,320SubscribersSubscribe

Latest Articles

0
Would love your thoughts, please comment.x
()
x