Bank Index Downward Momentum in Check...so Far

Last week I put up chart of the S&P Bank Index showing that it was close to hitting a fib target to the downside. It hit the 161% target and it's seen a bounce this week.

Fib targets are great places for reversals especially after a long extended move as in the case of the bank index. This would make sense for a relief bounce here if not a full blown reversal area.

There is one more longer term fib on the index chart below, the 423% from the tip top of the move down to the 46 area (it closed at 70 today). That area may still be a target so be aware of that one. The market may still show us a capitulation day that would shake out all the sellers and give the market a real reason to believe we've put in some sort of intermediate bottom. If that happens the bulls will try to take over for while.

The bank index has put in three consecutive up days.

Trivia: The bank index has only put in ONE rally with more then three consecutive up days since last May (almost 10 months). So, tomorrow we either tie the record with four or the index closes lower tomorrow.

S&P Bank Index: Daily Chart