A Change in Trend Could be On the Way

It’s all up to the banks. [Jeff Clark's Market Minute]( A Change in Trend Could be On the Way By Jeff Clark, editor, Market Minute If the stock market is going to rally in April, then the banks are going to have to lead the way higher. Two weeks ago, almost all the talking heads on the financial TV stations were crowing about an April stock market rally saying, “April is traditionally the most [bullish]( month of the year.” But so far, the action has been disappointing. As of Tuesday’s close, the S&P 500 is down about 132 points this month – nearly a 3% drop. Of course, the bulls will point out that we still have 16 days left in the month. That’s plenty of time for the market to recover and keep the April winning streak intact. But like I said, it’s up to the banks… Recommended Link [Biotech Breakthrough “Like Science Fiction,” Remarks Doctor]( [image]( Its codename is “CTX.” And a Nobel Prize winner has gone on record stating [this tech could soon mean the end of human disease as we know it.]( Its recent shocking trial results have been hailed as a “landmark.” As one researcher and surgeon puts it, this tech feels “like science fiction.” It’s set to generate trillions of dollars in the months and years ahead. It’s backed by a laundry list of billionaires including Elon Musk, Jeff Bezos, Bill Gates, and Sean Parker. Google, Stanford, and the FDA have all lined up behind it too. [Click Here To Learn What It Is.]( -- You see, the bank sector tends to lead the stock market. When bank stocks are rallying, the stock market tends to rally. And, when the bank stocks fall, so does the broad stock market. We only need to look at the 4% decline in the KBW Bank Index (BKX) over the past two weeks to explain the weakness in the S&P 500. But for the next couple of weeks, most of the major banks are scheduled to report earnings. Expectations are low... Any positive news could spark a rally in the sector, which should lead to a rally in the broad stock market. And it looks like the banks are setting up for a rally. Take a look at this chart of BKX… [chart] [(Click here to expand image)]( First off, the index is trading 12 points below its 50-day [moving average]( (MA). That’s a relatively extended condition. BKX usually doesn’t stretch more than 10 points from its 50-day MA before snapping back toward the line. More importantly, while BKX has dropped to a lower low for the year, the technical indicators at the bottom of the chart ([MACD]( [RSI]( and [CCI]( are making higher lows. This is the sort of “positive divergence” that often signals an impending change in trend – from [bearish]( to bullish. 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. The upcoming earnings reports could be a catalyst for that shift. Let’s face it, most investors aren’t looking for positive announcements from the banks. The yield curve has flattened… loan demand is down… and with the poor stock market action this year, trading revenues are likely to be lower as well. [[Bombshell Claim] The ONLY Stock You Need to Retire Wealthy]( The weakness in the bank stocks is already discounting all that bad news. So, any hint of good news could inspire an oversold rally in the banking sector. And if the banks start to rally, then the rest of the stock market should follow along. Best regards and good trading, [signature] Jeff Clark Reader Mailbag What’s your sentiment toward the banks causing a rally in the markets? Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com. In Case You Missed It… [Looking to help your retirement savings in 2022? Watch this 32-second Options Trading “Training Video”]( Options expert Jeff Clark is on a mission to show every American at or near retirement how easy it is to trade options. He even gives you names and tickers of the stocks. [Watch his 32-second Options Trading Video here.]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. 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