Above you can see, that the Banking Index has broken below the neckline of the Shoulder/Head/Shoulder top-formation, which has been building since September 2009. The break below the neckline at 44.12 has activated the formation for a decline to at least 27.36.Goldman Sachs has broken below important support at 129.50 calling for a continuation towards the 110 area.
JP Morgan is facing support at 37.38 and a break below here will open for a continuation towards the 24 area.
Morgan Stanley has broken down too and is headed for 17 as first support area, but we might see it decline towards it's 2008 low at 6.71.
Citi has broken support at 37.65 and is facing a decline towards the 25 area, but could decline much further too.
Finally Bank of America is headed for support at 6.41, but could easily continue towards its2009 low at 2.53.
All in all the banking sector is under serious pressure once more. This could mean a freeze of the money market, if one or more of the bigger banks faces trouble.
This does not boarder well for the financial markets in general.
No comments:
Post a Comment