Financial ETFs Dive as Goldman, Bank of America See ‘Death Cross’

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.

Goldman Sachs

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.


The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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