Bank Index Vs. SPX

By Gary Tanashian of Notes From The Rabbit Hole

NFTRH & Biiwii's Unique Market Perspectives • Feb 19, 2014 at 11:36 AM EST

The Dow is up 90 points and bulls are about to knock the bear case down again.

The Dow is up 90 points and the bulls are about to knock the bear case down again. Yet the Bank Index vs. the S&P 500 (market leader since 2011) works as a warning against bearishness, shouldn’t we accept it as a warning on a bullish stance now?

I may look foolish posting bearish things when it is obvious the world is bullish. But BKX-SPX should hold right here or a bull leader will have broken down. Here’s the daily view, which like the SPY-GLD ratio posted yesterday, has not confirmed the bounce in stocks. At least not yet.

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