Well, we might be getting ahead of ourselves saying “major breakout” but the banks have rallied sharply over the past 4 to 5 months.
And today we feature the popular Bank Index (BKX) because it is now running into important price resistance.
BKX has also formed a 3 year “cup” like base, so a move to new highs (with follow through) would be a major breakout. And that would be huge for market bulls
Nothing is for sure and, for now, this is just on my “watch” list. BUT, it is definitely worth watching considering the banks importance to the equities market and economy.
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$BKX – Bank Index “weekly” Chart
Pretty straight forward. BKX has formed a 3+ year base and is testing its highs. This is a “weekly” chart so this resistance is important and patience is required. Put it on your radar / watch list.
Twitter: @andrewnyquist
The author may have a position in mentioned securities 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 any other person or entity.
