Potentially Dangerous is The Best Way to Describe The Banking Index Now ...
Today's chart is an update of last week's ($BKX) Banking Index. It did hold within its rising channel's support line last week. However there is concern for later because the support line was breached for two days before the Banking Index found its way back into the range.
Note that the Banking Index is in a consolidation pattern. The good and the bad is centering around its strength. The plus is that it is above its short term resistance line. The not so good is that it is negative and has been in a technical downtrend since July.
There is another plus, and that is that the Banking Index is above its support line. There is no room for serious deterioration now, so be very cautious during the coming days. (This chart and commentary is updated daily in our paid subscriber section)