Banks Acting Like They Did In 2007. Banking Problem Part II Underway?

Is the Banking sector sending a message that weaker economic times are ahead for the U.S. economy? Possible.

(Click on image to enlarge)

This chart looks at the Banking Index (BKX) over the past 25-years. It 2007 the index broke 11-year rising support and its 1-year moving average at (1). Once the index broke long-term support and the moving average, the banking crisis was underway, as the index declined over 80% in less than 2-years.

The index rally over the past few years, took it back to 2007 highs, where a double top looks to have formed earlier this year. The weakness of late has the index breaking 9-year rising support and its 1-year moving average at (2).

The ole saying “So Goes The Banks, So Goes The Broad Market” comes to mind when looking at this chart.

Keep a close eye on the banking index going forward friends! They have sent important messages to the broad markets in the past and odds are high they will do it again.

Sign up for Chris's Kimble Charting Solutions' email alerts--click here.​

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.