Banks Poised to Pull the Broad Market Higher in 2013?
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Banks had much to do with the broad market decline from late 2007 to 2009, as the Bank Index (BKX) lost over 80% of its value. In 2012, the inset chart illustrates that the BKX index gained almost twice as much as the 500 index.
Over the last three years, the Bank Index could be forming a bullish inverse head & shoulders pattern. The potential neckline (1) continues to be important falling resistance since 2010. If the pattern read happens to be correct, a break of the neckline would be a positive for both the index and the broad market.
Will Banks pull the broad market higher in 2013? I would want to own them if a breakout takes place!
(c) Kimble Charting Solutions