Piggy bank on money concept for business finance, investment, saving or retirement fund
The party’s over for the biggest of the big bank stocks.
They’d been going up steadily for months and months but the trend now is definitely downward. Investors lost interest in the entire financials sector this week but it was the major New York City banks that showed the way.
One problem became evident Wednesday when Citigroup warned of “increased expenses” and a drop off in revenue from trading. The daily price chart reveals how selling in the stock had already begun to pick up earlier in the month.
That selling accelerated greatly this week as you can see by the big red volume bars.
Citigroup’s daily price chart:
Citigroup daily price chart, 6 18 21.
With price now clearly descending below the Ichimoku cloud, it’s clear that the uptrend is broken.
Citigroup’s weekly price chart shows that the company had just begun to hit higher highs than the very early 2020 levels:
Citigroup weekly price chart, 6 18 21.
The nice rally off of the March, 2020 pandemic lows may be over.
The JP Morgan daily price chart looks like this:
J.P. Morgan daily price chart, 6 18 21.
It’s similar to Citigroup’s pattern with 2 closes below the Ichimoku cloud: what had been trending upward is now headed down. Note the pick up in selling as indicated by the growing red volume bars below the price chart.
JP Morgan’s weekly price chart:
JP Morgan weekly price chart, 6 18 21.
From the March, 2020 low of 75 to the early June, 2021 high of 165: this has been an astonishing move for an old-name bank stock. The weekly trend remains upward even with all of the recent selling.
Here’s the Bank of America daily price chart:
Bank of America daily price chart, 6 18 21.
It’s the same basic pattern as Citigroup and JP Morgan with the early June peak giving way to quite a bout of selling this week.
Bank of America’s weekly price chart is here:
Bank of America weekly price chart, 6 18 21.
The stock broke out to higher highs in the February/March, 2021 area and just kept going. Until this week.
The Financial Select Sector SPDR daily price chart looks like this:
Financial Select Sector SPDR daily price chart, 6 18 21.
This is the exchange traded fund (ETF) that contains the financial stocks generally regarded as “major.” The most noticeable feature here is the huge red volume bar below the price chart. All of the steady buying from May to early June is now below water.
Here’s the Financial Select Sector SPDR weekly price chart:
Financial Select Sector SPDR weekly price chart, 6 18 21.
Taken as a whole via this ETF, the financials weakened considerably this week — and yet, the trend off of the March, 2020 pandemic lows remains upward. Matter of fact, it could continue to show a weekly red bar like this for another week or 2 without breaking this longer-term trend.
Not investment advice.
