Bank Index - Update

On March 2nd I spoke about how the banking index ($BKX) was ready for a large move based on the bollinger band contraction that was taking place on the weekly time frame. Since that post the index has surged higher which is helping to support the current rally in the stock market.

If you are long bank stocks, it would be wise to let these stocks run while moving up your protective stop below the last swing low to lock in any gains that you may have. You can read my original post regarding the bank stocks by clicking here.