KBW Nasdaq Bank Index - 3 Scenarios

13 Mar 2023

The KBW Nasdaq Bank Index (BKX) is a benchmark index that tracks the performance of leading US-based bank companies. The components of the BKX index as of my knowledge:

Bank of America
Bank of NY Mellon
Capital One Financial
Citigroup
Comerica
Commerce Bancshares
Cullen/Frost Bankers
Fifth Third
Huntington Bancshares
JPMorgan
KeyCorp
M&T Bank
Northern Trust
PNC Financial
Regions Financial
State Street
Truist Financial Corp
U.S. Bancorp
Wells Fargo&Co
Zions

Since price has lost the 94,94 key support the same level is now Resistance...

My chart shows 3 Scenarios:

1. The 'Good Scenario' shows dip of around 10% and rebound at 79-80$

2. The 'Most Likely Scenario' would be a test and rebound from 70,56$ (dual key support area around 25% lower)

3. The 'Bad Scenario' would be the revisit of 2008 crisis lows (early 2009 aftermath lows at 20 with 32 also offering a massive support level as well as potentially a huge opportunity for investors to buy in/or back in.

There is a doomsday 4th scenario for those who like to 'look for it'.

Will also post next a mini-chart on smaller timeframe:

One Love,

the FXPROFESSOR