KBW Bank Index Looks Shaky

As the U.S. Fed and Treasury Secretary try to assure Americans and the global investment community that their banking industry is secure, the price action on the following monthly comparison chart of the KBW Bank Index (BKX) with the KRE Regional Banking ETF depicts shakiness and incredible weakness, especially during the month of March.

Several regional banks within the KRE ETF have failed, so far, as described in my recent posts here and here. No doubt, we'll see more.

BKX has had great difficulty, since the 2008/09 Financial Crisis, gaining sustained momentum to hold onto gains made above 80.00, and to steadily increase its value...convincingly.

In fact, its current price of 83.65 is considerably lower than that set at its high, immediately preceding the Financial Crisis (121.16 in February 2007). 

Furthermore, it plunged below 121.16 in April 2002 and has been trading lower, ever since...so, it's been weak for a year, now...as has KRE.

Longer-term major support sits at 60.00.

A break and hold below 80.00 could see a retest of 60.00, or lower, in short order.

Sellers are currently in charge of this index, as well as KRE, on this timeframe.

Keep an eye on these two for reaction (immediate and longer-term) to the upcoming FOMC interest rate announcement and Fed Chairman press conference on Wednesday.

More By This Author:

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2023 Market Forecast

Disclaimer: All of my posts (and charts) contain solely my own technical analyses/opinions/observations (which may contain errors or omissions) of a variety of markets and are ...

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