Tuesday, May 18, 2010

Banks Take The Market Lower


Today one of the weakest groups of the day were the banking stocks. Up until last week the bank index (BKX) was actually holding up rather well as can be seen in the relative strength line making a new high. This week however things have changed considerably. The relative strength line has broken its uptrend line which is not a good sign for the market. When one of the strongest groups becomes weak, that's a negative for the stock market.

Some of the weakest stocks today within the BKX index were STI down 6.19%,  USB down 4.88%, MTB down 4.82% and Zion down 4.47%.



3 comments:

Anonymous said...

Hi Kevin. I've been a follower of your blog for several months. I have never acted on your advice, but I do appreciate the thought process being shared. It's fantastic and informative.

Kevin said...

Thanks

Anonymous said...

Kevin,

This could spell trouble for the market to break below 1000 this summer.

-traderwannabe

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