A couple very interesting things developed in today's equity action. The first one was described in today's earlier post in which I outlined why the bounce over the last several days now looks corrective, implying lower prices ahead. For the second development, let's take a peak at the banks:
Wow. A new closing low for the BKX. This is beginning to look nasty. I was thinking that the banks may put in a bounce to back-test the 75 price level, but the action over the last week now looks more like a mid-point consolidation. If price breaks down immediately from here, things are just going to get horrid, and technicals support such a break down now.
Let's touch on oil a bit since I called a top in yesterday's post. Crude fell about a buck fifty in today's session... not exactly what I was looking for in terms of a rapid retreat once the top was put in. Still, today's range was narrow, contained with the lower part of yesterday's range, and contract volume fell off. These are usually bearish indications. This week is shaping up to be quite interesting!