From the Desk of Alfonso Depablos @Alfcharts
Banks are considered one of the world’s most important industry groups as they provide an excellent overview of the economic environment and overall risk appetite toward markets.
After suffering a deep decline in Q1, prices carved out a tradable low, rebounded, and settled into a well-defined trading range.
However, these laggards continue to be a concern for the financial sector and the broader market as the charts look vulnerable heading into earnings season.
Here we have Money-Center Banks $KBE, Regional Banks $KRE, and Community Banks $QABA, all of which are below their AVWAPS from the May lows: