Tuesday, December 8, 2009

$BKX - Financials Showing Weakness

Financial stocks which have led the rally off the March low have now become laggards.  20 EMA crossed under 50 a month ago on the $BKX, and it's had difficulty breaking the 50 EMA since.  However, there also appears to be strong support around $43.40.  The current formation shows indecision with moderate bearish bias, and the financial leaders like GS are well underway in a downtrend.


Posted by Vagabond at 1:20 AM

2 comments:

  1. AnonymousDecember 17, 2009 at 8:53 AM

    What do you think about the recent very tight Bollinger Bands? Thanks

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  2. VagabondDecember 17, 2009 at 2:56 PM

    Large moves usually follow tight bollinger bands. Since the dollar is about to start an uptrend, that means the market will reverse and begin a downtrend. Gold could very easily retrace back to sub 1000 levels for a final backtest. Although, I don't see this market downtrend lasting very long.

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