Weakness in Citigroup, Bank ETFs Not a Good Sign for Market
May 12th 2011 at 10:12am by John Spence
Investors are trying to figure out if recent market turbulence is simply consolidation in a broader really or the start of something more ominous.
For their part, bears can point to a drop in banking giant Citigroup (NYSE: C) after its reverse stock split. Citi shares slipped nearly 3% on Thursday.
The stock accounts for about 7% of SPDR KBW Bank ETF (NYSEArca: KBE), which is in negative territory for the year as trouble in shares of large banks such as Citi and Bank of America (NYSEArca: BAC) have taken a toll.
The bank ETF is in danger of falling below its 200-day moving average as it trails the market in 2011. It was down about 1% on Thursday.
Financial-sector ETFs could see action during the session as Federal Reserve chief Ben Bernanke testifies on new financial regulation before the Senate Banking Committee.
SPDR KBW Bank ETF
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