We have been using the Bank Index as an indicator (BKX-SPX ratio), but how about nominal BKX? Here’s the weekly view…
BKX is just above important support after declining slightly from MACD and RSI divergences. It can go to the lower trend line and still be in an intermediate uptrend, but there’s a problem with that; it would also make a lower low to January, which would be decidedly not good.
Take a look at daily charts of JPM, BAC and other components. They are err… decidedly not good.
