Another piece to the "bears" case that the markets just won't recover is beginning to unravel a bit today as some of the larger financials in the KBW Bank Index (BKX.X) are on the move today and powering this index higher to levels not seen prior to the September 11th terrorist attacks. Current levels make for a tough entry level, but the observation should be made that this group is at least participating in a bullish way.
KBW Bank Index Chart - Daily Interval
Citigroup (NYSE:C) $49.39 +1.18% and Bank of America (NYSE:BAC) $69.03 +3.02 are the heaviest weighted stocks in the BKX.X and both are on the move today. Citigroup (C) makes up 25% of market value for the BKX.X, while Bank of America (BAC) accounts for a 10.7% weighting. Next in line is Wells Fargo (NYSE:WFC) $50.61 +2.42, which we did cover a couple of weeks ago as bullish, but only for 1/2 positions as we were not sure the BKX.X could get abvoe the 870 level of retracement. The BKX.X did get above that retracement and Wells Fargo (WFC) and Bank of America (BAC) really look to be leaders in the group. Bulls interested in the group may want to look for pullbacks to support levels as entry points.
I've heard enough bears say that the markets are in trouble because the financials just aren't showing any bullishness. Look for resistance in the BKX.X near-term where some bears with conviction will most likely be looking to trade their convictions. The 100% retracement was attached near a January 2001 all-time high.