The SPDR S&P Bank ETF dropped sharply in March because of elevated Treasury yields. It’s been quieter recently with the 10-year marching to new long-term highs, but will that last?
The first pattern on today’s chart is the series of higher lows between early May and mid-August. KBE proceeded to make a lower high after breaking that trendline and has made lower highs since. That may suggest the bounce was a bearish flag in the context of a bigger downtrend.
The falling 200-day simple moving average (SMA) potentially marks that downtrend. Notice how the 50-day SMA never managed to reclaim the 200-day SMA, which resembled the move in REITs before their recent collapse.
MACD turned lower around the same time and has remained negative since.
Next, KBE bounced at $37.43 in late August and early September. It peaked just below the same level on Friday. Has old support become new resistance?
Standardized Performances for ETF mentioned above:
SPDR S&P Bank ETF (KBE):
1-year: -22.71%
5-years: -25.44%
10-years: +23.29%
(As of July 31, 2023)
Performance data shown reflects past performance and is no guarantee of future performance. The information provided is not meant to predict or project the performance of a specific investment or investment strategy and current performance may be lower or higher than the performance data shown. Accordingly, this information should not be relied upon when making an investment decision.
Exchange Traded Funds (“ETFs”) are subject to management fees and other expenses. Before making investment decisions, investors should carefully read information found in the prospectus or summary prospectus, if available, including investment objectives, risks, charges, and expenses. Click here to find the prospectus.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
The first pattern on today’s chart is the series of higher lows between early May and mid-August. KBE proceeded to make a lower high after breaking that trendline and has made lower highs since. That may suggest the bounce was a bearish flag in the context of a bigger downtrend.
The falling 200-day simple moving average (SMA) potentially marks that downtrend. Notice how the 50-day SMA never managed to reclaim the 200-day SMA, which resembled the move in REITs before their recent collapse.
MACD turned lower around the same time and has remained negative since.
Next, KBE bounced at $37.43 in late August and early September. It peaked just below the same level on Friday. Has old support become new resistance?
Standardized Performances for ETF mentioned above:
SPDR S&P Bank ETF (KBE):
1-year: -22.71%
5-years: -25.44%
10-years: +23.29%
(As of July 31, 2023)
Performance data shown reflects past performance and is no guarantee of future performance. The information provided is not meant to predict or project the performance of a specific investment or investment strategy and current performance may be lower or higher than the performance data shown. Accordingly, this information should not be relied upon when making an investment decision.
Exchange Traded Funds (“ETFs”) are subject to management fees and other expenses. Before making investment decisions, investors should carefully read information found in the prospectus or summary prospectus, if available, including investment objectives, risks, charges, and expenses. Click here to find the prospectus.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
Related Ideas
REITs at Risk?
TradeStation
Broker
about XLRE