The Regional Bank SPDR (KRE) is showing potential with a break above the flag trend line. Notice how the ETF surged and then corrected with the falling flag. This correction alleviated overbought conditions from mid November and the breakout signals a continuation of the prior surge. The indicator window shows momentum improving as MACD turns up the last few days.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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