Photo by Adam Nowakowski on Unsplash
Bank stocks are suffering yes, but don't forget that markets go from pessimism (fear) to optimism (greed) and vice versa. Now that most traders/investors are in fear, it's usually the best time to buy. Looking at the KBE (Bank Sector ETF) chart, we still see a three-wave A-B-C corrective decline after a five-wave rally, which gives us a nice bullish setup formation. So, after reaching the golden 61,8% Fibonacci retracement and GAP from November 2020, we may easily see a stabilization soon. However, keep in mind that bullish confirmation is only above the 50 region, while it's above the 22 invalidation level.
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