From Chris Kimble: Since the first of this year, banks didn’t have much to brag about, as they lagged the broad market to the upside. While lagging, they potentially built a base that could reward the owners of banks for a while going forward.
Below looks at the Bank Index (BKX) over the past 6-years:
Potential that the sideways choppy action in the BKX index this year was an upper-level base to spring higher off of.
This week the BKX index broke out to the upside at (1), which is bullish price action for this key sector.
The SPDR KBW Bank ETF (KBE) closed at $45.29 on Friday, up $0.02 (+0.04%). Year-to-date, KBE has gained 4.81%, versus a 14.85% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.