With all of the recent lame earnings reports for banks yielding nothing but surging prices, it’s comforting to see that Morgan Stanley (symbol MS) is actually behaving rationally, down over 4% in the pre-market following its earnings report. Looking at the past decade, you can plainly see how MS is inclined toward major reversal patterns.

In spite of strength since December 26th, the course of Morgan Stanley has been “lower lows/lower highs” for an entire year now:

A gain of over 20% in three weeks

Just remember to keep the “big picture” of the XLF analog in mind: