By Andrew Nyquist
After topping with other major market indices on Friday September 14th, the Bank Index (BKX) pulled back over 5% to lateral support… before rallying again. However, this past Friday (just 3 weeks later), the index produced another topping tail at the same identical spot.
On a near term technical basis, this warrants some caution. On the one hand, the Banks have been strong and a big part of the rally. As well, a strong Monday would go along way to erasing the recent tail. On the other hand, we have dual topping tails (potential double top) and an RSI non-confirm (so far). This implies keeping risk on a shorter leash.
Trade safe, trade disciplined.
More charts found here.
Bank Index (BKX) chart as of October 5, 2012. Bank index price chart with technical support and resistance. Bank stocks technical analysis.
No position in any of the securities mentioned at the time of publication.
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of his employer or any other person or entity.