Bank ETF Nears Bear Cross as Citigroup, B. of A. Decline
June 15th, 2011 at 10:07am by John Spence
The largest exchange traded fund investing in U.S. bank stocks is nearing a bearish technical indicator as key moving averages prepare to cross over.
SPDR KBW Bank ETF (NYSEArca: KBE) was down over 1% in Wednesday’s stock pullback as top holdings Citigroup (NYSE: C) and Bank of America (NYSE: BAC) lost ground.
The bank ETF’s 50-day moving average looks set to fall below the 200-day. The pattern is often negative and is known as a bear or death cross among technical analysts.
Last month, individual bank stocks such as Citi and B. of A. experienced bear crosses. [Financial ETFs Dive]
The bank ETF is off nearly 9% year to date.
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.