The chart above shows the banking index (BKX.x) as it is ready to challenge the established highs from 2009. This index is the ONLY one that has not exceeded its summer highs. A new high in the bank index will be a "green light" for this market to run even higher. Of course, the doom-and-gloomers are waiting for the bottom to fall out. There is a time and place to be cautious and defensive. There are alot of crosswinds right now but the upside bias continues. This market has shown much bouyancy despite the uncertainties which remain. While everyone is focused on unemployment (a lagging indicator) this market, especially the bank index is telegraphing signs it wants to run higher.
Note: The above is for information purposes only. Any decision to buy, sell, or hold a specific investment for your portfolio should be reviewed by your own investment advisor.
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