At last month’s low the $BKX(KBW Bank Sector Index)had dropped 16% from the summer peak($112.00).
$BKX reached oversold levels not seen since early 2016 last month.
The rebound that followed, which began on Oct. 25, the $BKX has retraced 50% of the sell off from the summer highs.
Bear cross(50/200 day moving averages)took place during the second week of October, the index began to collapse soon after.
Both 50 and 200 day moving averages are declining.
Heavy supply near prior important monthly lows is now in play(April/June/July lows=$102.75-$103.10).
Result: We expect the $BKX to enter a corrective phase soon. A pullback once the Fed news is out of the way appears very likely. We will be looking to add to bank/financial positions as this plays out.