Tag: regional banks

Last post on KRE: https://bartscharts.com/2024/02/18/kre-february-18-2024/

Since the top in KRE around 77 EVERY down move swing has been equal to or close to the “read measured move arrow.”

I added volume tonight because I wanted to see if we had a BIG volume spike accompanying the pretty bullish engulfing candle (daily) that occurred on Friday. Volume is around the norm … take a look at when KRE bottomed. That’s a “capitulation” low.

We have a small gap that needs to be filled before we move into the crucial 42 area for the Regionals.

If Regionals are “ok” then this is a BUY PATTERN and KRE should find support in/around that level.

If the Regionals are “not ok” then, well, that level will NOT hold and the KRE will, more than likely move lower quickly.

Very interesting …

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.