THIS is important – February 4, 2024
Banks lead us UP and Banks lead us down.
https://www.cnn.com/2024/01/26/investing/premarket-stocks-trading-regional-banks/index.html
True, we have ‘some’ indexes making new highs but we also have some well below there highs in 2023. Market appears fractured …
- DJ Utilities and DJ Transportation – lower highs.
- DJ Composite, Russell, Value Line, SK&P 400 mid-cap – all down
- Financials – still holding strong w/ regard to sell patterns
- Junk Bonds still holding strong w/ regard to sell patterns
- Multiple long term SELL PATTERNS completing
Until Junk Bonds and the Financials really break out … I’m very cautious.
According to EWT and the WSJ of the 11 sectors that make up the S&P 500, only 1, technology, accompanied the index to new all time highs. The other 10 are all at least 15% below their highs.
A key index to watch and one which will give us an idea of where we “really are” is the KRE …
Here is the SELL PATTERN forming on KRE:
The pattern, THUS FAR, has worked perfectly … if it keeps working the regional banks are in trouble folks and that means pressure on the equities.
Sorry, not all in on this rally in the overall equity world UNTIL KRE smoke this sell pattern w/ a WEEKLY CLOSE on strength above 55.
If KRE keeps going lower, something is a foot at the circle K.
Bart's Charts 
Thanks for the summary and the charts. Really enjoy your work. Looks to me like 45ish is the make or break on the KRE. It is a good bell cow.