Banking Index – January 31, 2023

I’ve blogged this before and I’ll blog this again – banks lead us UP and they lead us DOWN.

Below you can see a “pretty clear” 5 wave count UP in the Banking Index from the 2009 lows. We do have a slight overlap of Wave 4 and Wave 1 but I’m going to go for it as it’s not on “close” and the count fits/works.

What we have here is an “almost” perfect GARTLEY SELL PATTERN on the banks.

I saw @RyanDetrik tweet about the January effect today and I do trust and admirer his work … probability is saying that we have a STRONG year this year. I’m not there, yet.

I’m 100% prepared to throw in the count for a “next move is bearish” and just hit ctrl-alt-del and erase and take a look at it with fresh eyes.

That being said .. .the DSI on Gold is SPIKED HIGH for the bulls, we have an amazing BUY pattern on the VIX, sell PATTERNS on the Banks and JNK bonds inbound and the Euro/Dollar are both finishing /finished up 5 moves. Pullback or a resumption of the move down. I don’t know but I think this move u since October is on borrowed time …

Note – where have the banks been. W/ all this bullish talk they haven’t even made a .382 retracement, yet. Hmmmmm …

WATCH THIS LEVEL ON THE BANKS TOMORROW. A daily close ABOVE 115 and this market could be off to the races. Only TIME will tell …