If you own Bio-Tech or Social-Media stocks of late, its been a bumpy ride (-15%+). However, if you own the banks, they've held up well compared to some hard-hit sectors. The above charts reflect that the Bank Index and Regional Bank ETF (KRE) have had quality rallies over the past couple of years.
Pushed To Resistance
And those rallies have pushed both to Fibonacci resistance levels tied to the Financial crisis in 2009. The Bank index stands at the 50% Fib level with momentum at lofty levels.
So goes the banks, so goes the broad market? Often that's very true. If Banks break out here, it could help pull the broad markets higher. These leaders find themselves at important levels with momentum over bought.