Battered Bank Index Tests Major Technical Level for Third Time
(Bloomberg) -- Bank stocks are headed for the worst day of the year thanks to yields tumbling at a rate last seen after the Brexit vote. But thing’s may not get much worse from here, according to chart watchers.
The KBW Bank Index (BKX), down as much as 4.1 percent today, has fallen to its 200-day moving average at around $105. The index has already bounced off this technical level twice since early April -- a good sign for those that are looking to buy on the dip.
There’s a lot of pressure on that technical level, though. The BKX’s uptrend from the June 2016 low gave out today and if the moving average fails to arrest the slide, the next level to watch would be the 23.6 percent Fibonacci, which is around $103.64.
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