BKX weekly

I noted this to subscribers the other day. Unless something drastic happens before the end of the day this weekly chart looks like the BKX may be ready for the counter trend rally similar to what housing did in 06. peak to trough the banks have moved down 35%. Intraday Wed. the BKX was 26.3% below the 200 DMA. That's about as stretched as it's ever gotten. If the banks rally here for a bit it will take quite a bit of pressure off the general market. I don't think for a minute this will be the end of the troubles for the banks but things can only get so stretched before snapping back to the mean.