Wednesday, May 13, 2020

U.S. bank stocks approach turning point relative to tech

Shares of U.S. banks have become so weak by comparison with technology stocks that a turning point is coming soon, Jonathan Krinsky, chief market technician at Bay Crest Partners LLC, wrote in a report Wednesday. He cited the ratio between the KBW Bank Index and the Nasdaq-100 Index, which closed at record lows the past two days. Wednesday’s ratio was 39% below the average for the past 200 trading days, according to data compiled by Bloomberg. The historically large gap shows “we are in the ballpark” for a swing toward banks, Krinsky wrote.

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