Regional Banks (KRE) made a comeback during the session.

The price pierced the 44 resistance level and closed above the last 18 trading day’s range.

On March 6^th, over a month ago, I wrote a Daily called, Retail and Regional Banks Will Call the Shots

At the time, KRE was trading at $60 and predates the short-lived banking crisis, but not by much.

That began happening on March 7^th.

Now, with lots of bank earnings out of the way, and a rally in KRE, once again, the Fed could have bad timing.

On April 12, according to Fed documents, “fallout from the U.S. banking crisis is likely to tilt the economy into recession later this year.”

Maybe.

But maybe, with KRE holding and that potential bottoming pattern emerging, and with the indices rallying..

That feels great for now but comes back to bite later.

For now, let’s focus on the chart.

Momentum according to our Real Motion, says sideways with a slight uptick.

Plus, the red dots or momentum tracker is way closer to the overhead moving averages than the price is to its MAs.

Momentum must continue to improve. Should that clear the MAs, then we would expect KRE’s price to go up closer to 50.

That most likely will mean the SPY runs over the 420 level.

The 23-month moving average, shows potential business cycle expansion, everyone jumps back in the pool.

Awesome, right?

Projecting ahead - KRE has a long way to go to get back over the huge crash from the weeks of March 6 and March 13^th.

However, this is a catch while you can market.

So for now, our Prodigal Son caught another break.

ETF Summary

S&P 500 (SPY) Tight range to watch this week 412-415

Russell 2000 (IWM) 170 support- 180 resistance

Dow (DIA) Over the 23-month MA 336-impressive if holds

Nasdaq (QQQ) 312 support over 320 better

Regional banks (KRE) 44 now pivotal

Semiconductors (SMH) 258 resistance with support at 248

Transportation (IYT) Timely

Biotechnology (IBB) 130 major pivotal area-135 resistance

Retail (XRT) 58- 64 trading range to break one way or another

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