Long-term market breadth has been rising for nine days. That usually takes most stocks in the same direction. After all, if a stock isn’t rallying when it has the entire market on its side, when is it going to rally?
So, consider the banking sector…
JPM, BAC, GS, WFC, DB, KBE (the ETF for the sector) are all falling while breadth is positive (see the rising green in the middle of each chart below), and now all of these stocks have broken support falling out of their respective consolidations (see the blue boxes on the charts below).
Don’t those boxes look a lot like coffins? So is this out of the coffin and into the grave like “out of the frying pan and into the fire”?
Enough fiddling around.
If you’re a bull this is not a sector you want to see lagging, let along falling apart. So here’s the heads-up, they’re likely going down.
(click on the chart for a larger view)