Last week, the regional banks, KRE, are bludgeoned -10% and now down -23.4% off the top last summer firmly in bear market territory. The XLF, reflective of larger banks, insurance companies and other financial companies, crashes -5%, and is down -14% off its top now in correction territory. Comically, the Wall Street pundits have been hyping the banks for over a year's time; all they did was lose money for anyone that jumped on their rickety bandwagon.
The candlesticks show three down weeks out of the last four with a bigtime collapse to the 200-week MA at 49.24. Price will bounce or die from this level and as the banks go, so goes the stock market. The brown line also shows that this level is strong price support. Bounce or die. ZION is kneeling saying prayers.
The selling volume last week is huge. Many investors said they are done waiting for banks to rally and are cutting bait. The blue lines show downward-sloping channels in play. Price is testing support at the confluence of the blue trend line, the brown price support line and the 200-week. Bounce, or die.
ZION loses -11.2% last week. RF -14%. PNC -8.2%. STI -10%. STT -7.3%. That is carnage. The banksters are wearing bandages around their heads to stop the bleeding from the severe beatings.
The weakness in the banks created much of the weakness in the broad stock market late last week. Keystone does not own any bank trades long or short right now. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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