A Trifecta of Big Banks

05/06/2014 7:00 am EST

Focus: STOCKS

Chris Kimble of Kimble Charting Solutions notes that these big banks have all broken two-year support, which could be a predictor of future weakness in the broader market.

So goes the banks, so goes the broad market? Well...this is not a perfect analogy, yet more often than not, what banks do (strong or weak) does seem to have an important impact on the broad markets.

chart
Click to Enlarge

The above three-pack reflects that Bank of America (BAC), JP Morgan (JPM), and Goldman Sachs (GS) have all broken below two-year rising support lines, while the broad markets have not. The power of the pattern would suggest one should keep a close eye on these key financial stocks to see if any further weakness takes place and if it starts to impact the S&P 500.

By Chris Kimble, Founder, Kimble Charting Solutions

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