Let's check the dashboards for the banking sector to see if things are improving yet.
Here is the Canadian Financial sector
The MACD has a histogram just pushing above the zero line. That's promising. The Full sto's are trying to come out of oversold. That is usually a good entry. There has also been really strong volume for the last 3 weeks coming into Christmas. That's interesting. Still just below the 10 week MA.
CIBC, Royal and TD are above the 10 week.
Here are the US Banks
You can see a few of the US banks are pointing higher. USB and WFC are pointing higher. C and JPM are building bases. BAC is still pointing down. 4 out of 5 are not bad.
Couple of these European banks are setting up rising bases.
Well, it looks like banks are firming up. Maybe we can see some rallies into earnings. Today was a nice reversal to push higher off a difficult open.
As an aside, I find it really interesting how the Nasdaq had such a weak NAHL line. Amazingly, Oracle comes out with the first major earnings call miss in a while.. Definitely some weakness showing up in tech.
Here is a link to the breadth charts.
Good Trading,
Greg Schnell, CMT
