Entries in Quadruple Bottom (1)
Bank Index -- ***Breakdown Alert***
Price Patterns
in Quadruple Bottom
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Traders are on edge this morning; precariously, the market is on edge.
Anything is possible today, and this week, with so much focus on the '87 crash. Markets remember.
Perhaps the most bearish development is the breakdown in the Bank Index ($BKX). We put the BKX on the radar at its triple-bottom about one month ago.
Through last Friday, the BKX was down in eight consecutive sessions, and had broke through its triple bottom at 102. If you count last Thursday's test at 102, it's now a quadruple-bottom.
The breakdown in the BKX dovetails with the breakdown in Countrywide Financial (NYSE:CFC). Both portend further downside for the broader market. From the housing/subprime perspective, CFC looks terrible. From a broader gauge of the U.S. banking system, the BKX looks bad.
