The Banking Sector

The BKX is the US banking index, and in light of some of the key members, such as BAC and C, being in bear markets since 2007, I thought the BKX had  peaked and rolled over also…

However, in light of the possibility that the US equity markets continue their long-term bull market trend out until ~2032, here’s a look at the BKX (and the six largest US banks) with an alternate fractal count that extends the bull market in the banking sector…

 

If this fractal interpretation is correct, then the BKX is in a wave-d:V, with one more leg down possible, but not necessary… watching…

 

Link to larger chart:  Link 

 

The Six Largest US Banks (in order)

 

JP MORGAN CHASE – the chart for JPM can be interpreted a few ways, though this is how it seems to make the most sense for now…

Under this fractal interpretation, wave-d:V is in work, or possibly complete…

Eventually, price will push back upward to the upper channel line UTL, and depending on when that happens, will determine how high price will actually go… watching.  @jpmorgan

 

Link to larger chart:  Link 

 

BANK OF AMERICA – here’s an alternate fractal count for BAC that will allow it to continue upward in wave-e:c:B…  though please bear in mind that it’s still only a bear market retrace… watching.  @bankofamerica

 

Link to larger chart:  Link 

 

WELLS FARGO – I’m highlighting the banking sector this weekend (last weekend), since I updated the BKX yesterday, from completing its bull market, to extending its bull market…

WFC appears to need one more leg down to complete wave-d:V, though it does not necessarily need to be a lower-low, as both wave-c and now wave-d have moved out of the upward channel created by waves a & c and the parallel lower channel UTL set at the b-wave low…

Once wave-d:V is complete, WFC will rally again to the upper channel line UTL… watching.  @wellsfargo

 

Link to larger chart:  Link 

 

CITIBANK – here’s an update of C with the previous fractal count and an alternate fractal count also…

Please bear in mind, that like BAC, C is in a bear market rally, so it’s upside is limited, though needed for the index to continue rising.

I suspect the alternate fractal count is correct, if the BKX index is going higher still, it will need participation from most of the major/largest banks in the US… @citibank

 

Link to larger chart:  Link 

 

GOLDMAN SACHS – I love the oft-precision of fractals…

Here’s the updated fractal count for GS… it shows wave-d:V in work or complete, with the momentum indicator line bouncing off the bottom of the gray zone…

If my fractal interpretation is correct, GS will eventually move back upward to the top channel line UTL, which will likely be back up at the ~300 range… watching.  @goldmansachs

 

Link to larger chart:  Link

 

MORGAN STANLEY – the last of the US’ six largest banks I’m featuring this weekend (last weekend)…

As with the previous five covered, MS is in wave-d:V, and it seems it needs another leg down to complete…

Notice the throw-under on the steeper set of UTL channels, I would expect to see the same on the way back up in wave-e:V… watching.  @morganstanley

 

Link to larger chart:  Link 

 

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