Banks Are Firing a Warning Shot

Becoming a winning trader requires more than luck, here’s what you truly need to succeed… [Jeff Clark's Market Minute]( Banks Are Firing a Warning Shot By Jeff Clark, editor, Market Minute The bank stocks have fired a warning shot. The Nasdaq and S&P 500 are trading at all time highs, and the technology sector is getting all the attention. So, it seems like nobody is watching the banks. Maybe we should, because that picture doesn’t look so pretty. Here’s the chart of the KBW Bank Index (BKX)… The BKX peaked last month near 108. It has since pulled back about 7%. While the index is still up on the year – about 4% higher than where it started 2024 – the recent action is concerning. Recommended Link [Do NOT Buy Nvidia, Apple, Microsoft, Meta, Tesla, or ANY Major Tech Stock…]( [image]( 31 billionaires (including: Warren Buffett, Elon Musk, Jeff Bezos, and more) are quietly unloading shares of their OWN stocks at RECORD pace… But why? Wall Street legend Eric Fry says it’s because, soon: [“America’s most popular stocks like Nvidia, Apple, Meta, Tesla, and thousands more… are set to come plummeting back to Earth.”]( Erasing YEARS of investor profits… Sparking a $17 trillion PANIC on Wall Street… [Click here to get the details of what is being called: The 2024 Tech Panic.]( [Click here for details.]( -- Bank stocks tend to lead the broad stock market. A rally in the banks tends to precede a rally in the S&P 500. And, a decline in the banking stocks often leads to a decline in the market. So, the fall in BKX over the past month is a bearish omen. Another concern is that the moving averages on this chart shifted into a bearish formation last week. The 9-day exponential moving average is trading below the 20-day EMA. And, both of those short-term moving averages are trading below the 50-day MA. The two times that happened last year marked the start of intermediate-term declines for the bank sector. And, the broad stock market followed the bank stocks lower. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. So, unless the bank stocks recover this week, and the short-term moving averages cross back above the 50-day MA, the banking sector is likely headed lower over the next few months. Technology stocks have been fueling the constant stream of new all-time highs in the Nasdaq and the S&P 500. But, the bank stocks are a stronger leading indicator of market direction. The BKX has been falling for the past month. And, it looks like that decline is about to accelerate to the downside. When that happens, the broad stock market is likely to follow. Best regards and good trading, [Signature] Jeff Clark [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](