Bank Index Vs. SPX

The Dow is up 90 points and the bulls are about to knock the bear case down again. Yet the Bank Index vs. the S&P 500 (market leader since 2011) works as a warning against bearishness, shouldn’t we accept it as a warning on a bullish stance now?  

 

 

I may look foolish posting bearish things when it is obvious the world is bullish. But BKX-SPX should hold right here or a bull leader will have broken down. Here’s the daily view, which like the SPY-GLD ratio posted yesterday, has not confirmed the bounce in stocks. At least not yet.