Bank Stocks Will Be in Big Trouble if Support Breaks
2024.09.06 15:59
It’s September and the stock market is trading just below all-time highs. BUT, volatility has crept into the equity markets.
Uncertain economic data, questions about the Federal Reserve’s next move, domestic politics, and wars abroad are consuming investors.
SO, it is not surprising that bank stocks by be reaching a decision point.
Today, we look at a long-term “monthly” chart of the (BKX) to highlight its importance in determining the stock market’s next move.
As you can see, BKX is testing a historical support/resistance level following a multi-month rally at (1). At the same time, price has turned lower in early September and is currently testing support within a steep and narrowing rising wedge pattern.
I cannot help but think that what happens at (1) will be a BIG DEAL for banks and broad market! Bullish if it holds, bearish if it breaks. Stay tuned!
