I initially warned about U.S. bank bubbles bursting on April 10, 2021. Since then, we've seen another bank's demise unfold: Silicon Valley Bank (SIVB).
It's interesting to note how closely SIVB mirrored the movements of Bitcoin, COIN, FNGU (10 Tech FAANG+ stocks ETF) and BLK, as shown on the following monthly comparison chart. They all rose and fell on parabolic movements...indicating a lack of investor confidence in their ability to retain any long-lasting, sustainable value.
Their price action has moved in lock-step with the SPDR® S&P Regional Banking ETF (NYSE:KRE).
Keep an eye on these in the coming weeks, inasmuch as a collapse in SIVB may trigger contagion to other banks, including KRE, as well as FNGU, Bitcoin, and other cryptocurrencies and exchanges.
By the way, major support for KRE sits at 50.00, as shown in the following monthly chart. It's had difficulty holding onto, and adding to, gains made above that level since November 2016.
A break and hold below could see the price drop, in short order, to 40.00 or lower.
