How low can U.S. banks go versus tech?

Favoring U.S. bank stocks over the shares of technology companies “just does not make sense” based on relative performance, according to David Keller, chief strategist at Sierra Alpha Research LLC. Keller drew the conclusion Thursday in a Twitter post that cited the ratio between the Financial Select Sector SPDR exchange-traded fund and its technology counterpart. The ratio fell as much as 17% after setting a record low on March 12, according to data compiled by Bloomberg. The previous low was recorded in March 2000, about 15 months after the ETFs began trading.

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.