Despite general worries about Citigroup:C and CIT Group:CIT. The bank sector confirmed its breakout and today traded for the first time in 2 years above the 200MA.
The financial crisis is over!
Factors that have come to signal this long term bullish move and a broader signal to the rest of the markets and economy that everything will continue to recover. Probably at a faster than expect pace as well. These are...~banks posting profits and paying back TARP funds, including Goldman Sachs record profits
~the US housing market turning around, inventories at their lowest levels since 2000, with the housing recovery imminent, the american consumer will comeback, the habit of using their house as ATM machines is still too fresh to completely be forgotten
~continued depletion of USD...
This is important for the continued recovery of the American economy in general. (it encourages foreign investment in the States, as well as help turnaround the depleted manufacturing industry in the states, and more importantly fro economists... the trade deficit.)~technicals, technicals, technicals!
~the global recession much less than anticipated... especially in high growth industrializing countries...
Below are the charts of 2 US bank indices that I follow. The KBE and the $BKX. The clearly show the breakout formation that is developing.