Regional Bank ETFs Face Technical Tests

An improving U.S. economy could foster increased borrowing and financing by businesses, large and small, across the U.S. while benign mortgage rates could also provide a lift to the mortgage lending operations of regional banks.

SEE MORE: As Fed Leaves Rates Unchanged, Big Bank ETFs Celebrate

“If KRX prices are able to reclaim the top of the post-2011 trendline, then not only is more upside opened up immediately in the sector, but it may be a vote of confidence for a continued hawkish tone out of the Fed. If the index is rejected here, then not only is further upside in financial shares going to be a challenge, but the interest rate pendulum may again swing back to the doves,” adds See It Market.

For more information on Bank ETFs, visit our Banks category.

SPDR S&P Regional Banking ETF