Has Damage Been Done To the Banking System?
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.