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.
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