March ... April ... June ... the Banking index climbed with the market.
In early May, the Banking index topped out at 43.67. And then ... it pulled
back sharply.
From there, the Banking index tested and held its April/June support as it
tested it 3 times.
But yesterday in the last 5 minutes of trading, the Banking index dropped
and closed below its 3 month support line. ( See today's first chart below.)
So, the test was to be today ... would it retest the new resistance line or
not? Or, would it just keep falling after breaking that 3 month support level?
See today's 11 AM chart below ...
Below is today's 11 AM Banking Index chart ...
At 11 AM the Banking index was down as seen in the chart below.
Actually, it went straight down until 10:51 AM when it became intra-day
oversold with an upside divergence.
That means it should now move up and do some kind of retracement on today's
down movement.
So now investors should watch to see how it closes. Even if it closes positive
today, or has a nice upside retracement ... a lot of damage has been done.
Marty Chenard is an Advanced Stock Market Technical Analyst that has developed
his own proprietary analytical tools and stock market models. As a result,
he was out of the market two weeks before the 1987 Crash in the most recent
Bear Market he faxed his Members in March 2000 telling them all to SELL. He
is an advanced technical analyst and not an investment advisor, nor a securities
broker.
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