The economy and a strong Banking background go hand in hand. How could you have a strong economy with the Banks in big trouble?
And so, with that correlation, we will look at the Banking Index today.
Below is the Banking Index chart of the BKX.
First, look at the pricing bars and note how the pricing made a lower high in November-December of 2015, and then a lower/low in January-February of this year.Since June-July (of this year) the Banking Index has made a higher-high and has risen above its down trending channel ... a plus.
The odds are high that this is the beginning of some longer term up trending action. While that is a plus, note the upper resistance (horizontal) lines that it will soon face.It may be after the November elections, but when it happens, it will be a formidable test to face.
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