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Friday, May 29, 2009

Financials: Charts Say "Decision Time"


The Bank Index (BKX) was rejected by the declining 200 day EMA (green line) and is now sitting on support, entangled by the 20 and 50 day EMAs (blue line and red line).

An oversold bounce is possible, but failure to do so would make this chart "roll over". The broader markets would have a tough go of it without the financials.

Momentum is waning. The MACD has crossed over twice now and never confirmed the last price high...

The Regional Banking Index (KRX), is clearly weaker than the BKX. Price is now below all three moving averages, the 200, 50 and 20 day EMAs (green, red and blue lines). The regional banks are the ones that got deep into commercial real estate loans. They're also the ones that got bailed out the least and are expected to be the "next shoe to drop".

Make or break time for financials and the broader markets can't make a sustained move without them...

6 comments:

Anonymous said...

What is happening to the dollar?

Anonymous said...

damn ninja, its good to have you back. even with a mild pullback or rollover, the level of bad news required to crush the bulls is a terrorist attack i think.

Anonymous said...

Oops, bears got ripped a new one.

Evan said...

http://www.bloomberg.com/apps/news?pid=20601109&sid=ad3g0wmJFaZQ&refer=homehttp://www.bloomberg.com/apps/news?pid=20601109&sid=ad3g0wmJFaZQ&refer=home

You called it 4 mnths ago Ben...the vigilantes have arrived

Anonymous said...

Those "bond vigilantes": are they fueled by tax-payer bail-out $$? To begin with anyway?
They are nowhere to be found when there's wars to finance(hence MIA during the Bush Torture Camp construction/roll-out phase): they only show up if there's welfare/income support/pensions to be paid - you know, stuff that's useful for people, rather than useless death & destruction in far-away lands to be paid for... with Joe Average's tax $$.
Or would those vigilantes be broke now, if they had not been bailed out by Uncle Sam (and all their friendly governments) last year?

PS: I see that Georgia's no longer in the news, now that that idiot American-trained president (who attacked Russia last August while the world was distracted by the Olympic opening ceremonies) is on the ropes.

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