Bank exchange traded funds were the worst sector in Friday’s stock pullback with shares of Goldman Sachs (NYSE: GS) and Bank of America (NYSE: BAC) seeing so-called death crosses that could spell further weakness.
Traders closely monitor moving averages to get a sense for where stocks and ETFs are trending. When the 50-day moving average drops below the 200-day average, traders call it a death or bear cross.
Oftentimes the technical indictor is a signal that more losses are on the way.
Bank of America
SPDR KBW Bank ETF (NYSEArca: KBE) was down more than 1% Friday along with shares of Goldman and B. of A.
The bank ETF has crashed below its own 50-day moving average.
SPDR KBW Bank ETF