90-Day Bank Decline Wipes Out Half Of 14-Year Rally-Key Support Test Now In Play

Our banking system is at the heart of our economy and an integral sector within the stock market. So the latest news about regional banks struggling has investors a bit shook up. 

Today’s long-term “monthly” chart of the Banking Index (BKX) underscores investor’s latest round of uncertainty… and why bulls need to step up right here and now.

So we turn to Joe Friday and ask, “The facts, Ma’am. Just the facts.”

Looking at the chart, we can see that the Banking Index BKX has been in a 14-year bullish rising trend. But that trend is currently at risk.

The Facts; The decline of the last 90 days has the Banking index testing the

“50% retracement level of the the14-year rally, off the 2009 lows!!!”

Since it has technically pierced its rising channel, it is extra important that the 50% Fibonacci support holds and price rebounds quickly. If not, a deeper decline may come into play… and the next Fib level is nearly 15% lower.

(Click on image to enlarge)

More By This Author:

The Financial Sector Is Teetering On Historic Technical Support
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Gold Bulls Eyeing Historic Super-Cycle Breakout Level

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