Banking index that was late to sizzle is still faltering in its fizzle

Laggards in a rally are often the first to fail when it's over. Since the banking index ($BKX) was late to break out for the second rally leg (which we pointed out as it was starting), it quickly hit what looked like a triangle measured-move target (which we pointed out at the time too). And then dropped, and now hasn't made another higher high. Perhaps that's still possible, but it looks more like a head and shoulders forming. Something to keep an eye on, because continued weakness in the banking sector would be a form of negative divergence for the broader market.

Below are Tony Caldaro's OEW charts for the banking sector (from his site in the list at right) - the negative divergence is apparent: