Joe Friday: "Jobs Report? Check Out the Banks."
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It's "Jobs Friday" as we await this morning's employment report.
Joe Friday says, "Jobs are very important for sure. Don't over look the importance of banks and the patterns they have created over the past few years in the charts below."
Why could the situation in the Banks be as (or even more) important than the jobs report this morning? Banks were a key player in the large decline from 2007 to 2009, and they were a key player in the rally from the 2009 lows until now.
The Bank index (BKX) and Financial ETF (XLF) both find themselves at their 38% Fibonacci retracement level of the financial crisis and have created bearish rising wedges that two-third of the time suggest lower prices are ahead.
Joe Fridays says, "Job's Friday is important! Just as important is how the Banks handle these patterns in the 2-pack above. So Goes the Banks, So Goes the S&P 500. It would be good for a strong employment report to come out in this morning; it would be even better for the economy if Banks would break to the upside!"
Are bonds confirming Copper's concern that the global economy is slowing down? (See slowdown post here.)
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