investmentwatchblog.com / BY IWB ·
by Dana Lyons
The recent breakout in financials is occurring right into potential chart resistance.
One of the big winners in the “Trump Rally” has been financials. In concert with the spike in bond yields, bank stocks jumped some 30% in the month following the election, as measured by the KBW Bank Index (BKX). After consolidating over the subsequent two months, the BKX finally broke out to new highs this week. In doing so, it cemented the continued relative strength in the space. But while the development has the look of a continuation pattern, i.e., to the upside, there is at least one piece of technical evidence dampening our enthusiasm regarding the breakout.