Tuesday, October 13, 2009

Bank index between higher "b" wave effort and bearish h&s pattern

Other than one "bank" - Goldman Sachs - the banks in general have been struggling and not making new highs. The daily $BKX chart below, shows that it's either going to make a new high soon that may complete its "b" wave rally. Or it's going to confirm that it already finished its "b" wave and go into a bearish head and shoulders (h&s) pattern and drop. Since the banks remain important to equities generally, keep an eye on this over the coming days!

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