About one more hour to finish Wednesday's trading session, the S&P 500 index is down slightly, -0.15%. But, major banks are selling off big as you can see below.
It's not hard at all to find bullish news on bank stocks. Here's an example from CNBC.
Now, let's take a look at the daily chart of Bank of America.
It appears the issue is forming the descending triangle, a sell pattern. If you look at the weekly chart, you can find a famous sell pattern.
I'm sure many traders are seeing the head and shoulders pattern. Break below the neckline signals a sell, and the target price is near $18.
JPMorgan Chase has already signaled a sell.
The stock price has broken below the neckline, and we may see a test of near $73.
Citigroup is still trading near the recent highs, but the RSI (relative strength) is showing a negative divergence.
The issue is challenging the recent highs, but the RSI is negatively diverging from the price and declining. This is a troubling sign.
Many analysts love bank stocks, but the nation's biggest banks are beginning to show weakness. In other words, charts are sending us warning signals.
