Banking Indices: Fail / Heading Lower.

Regional Banking Index - rally off March Lows - broke down channel, but now seem to be running low on “juice” to continue the rally; The weakening commercial r/e market and the stagnation in the economy is having an impact. I spoke with a regional banker this weekend and he suggested to me that banks are still not willing to take the risks to finance new commercial deals. They feel as though there is still more room to move with regard to valuations - very tentative.

Bank Index broke out of the channel, seems ready to rollover, and break down, but there is some divergence in the momentum indicator, suggesting that it might go higher, possibly retesting the trendline, prior to plunging lower.

Mortgage Finance …..ditto

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