Banking index just hit Fibonacci level on potential turn date - keep eye on this

If today's a turn date or trend change date, that wod be fine for the banking index as far as I'm concerned. Today some banking names like Citigroup (C) and Wells Fargo (WFC) popped ... anyone remember that we were tweeting and re-tweeting about Citigroup some days ago? about the pickup in options activity? I'd say that cane to fruition today. Now, notice on my weekly chart of the banking index ($BKX) below, that today the banking index did hit the Fibonacci retrace level of $50.47. So this could provide resistance, maybe a trend change at least temporarily.

Does it have to turn back the banking sector? No - the $BKX didn't even get to the .382 retrace to its former peak (that retrace would be about $57). The $50.47 is merely the 50% retrace to a very significant swing high before this index fell to its knees in late 2008 and 2009. I dint know that it tells us what the Elliott Wave count is, either. I just know that the $BKX had started looking like it wanted to head up to this level, as I've posted here in the past a couple of times (after it failed to drop catastrophically from a potential "B" wave level and coiled sideways instead).

I do believe this level can prove resistance as the $BKX also hits up against the upper Bollinger Band on the weekly, which also has entered overbought levels on the StochRSI and CCI. My weekly $BKX chart may have blown past the old trendlines still marked on it, but the Fibonacci levels are still significant (and of course the technical indicators speak). Traders and position investors will still want to see if a reversal pattern prints out on the hourly and daily charts (selling volumes that start making lower lows and lower highs, after a close under today's low or under the low of a day that may poke a bit higher).

It's also very interesting that this occurred on a day that can be a turning date, as I posted earlier today. So I'm going to be watching how the banking index reacts from here. If speculating short with a nimble margin account, it will be important to stop out swiftly in case it doesn't reverse (since overbought can become more overbought). And it's also important because this sector is often viewed as a core sector for the health of the general equities indices.