We have been watching the Bank Stock Index (BKX.x) over the past few weeks as it has attempted to break through the high which it set in early 2009. On Friday the Index opened at 50.92, a new high, and proceeded to close lower. The overall market traded with lackluster performance on Friday.
As you can seen this Index remains in an upward trending channel. The confirmation of BKX with the other indices at reaching new highs is a huge sign and mostly went unreported in the media. We should continue to see the overall market move higher based on the technicals. No long-term market rallies can continue without bank stock participation. Surprising enough, this market has rallied for about a year without significant bank stock participation. Looks like the banks will start participating.
Note: The above is for information purposes only. Any decision to buy, sell, or hold a specific investment for a portfolio should be reviewed with your own personal investment advisor.
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