This month saw a short-covering rally in the index, followed by another big sell-off.
This has produced a bearish shooting star doji candlestick, with the month-end closing only a few days away.
One scenario is for a 60% collapse in this index from here into late 2022, early 2023...over the next 18 months.
If this scenario plays out, bank solvency is a risk over the next 18 to 30 months.
BKX banking index monthly chart
(Click on image to enlarge)
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