The SPDR S&P Regional Banking ETF (KRE) remains weak and poised to move lower on charts. This does not look like the regional bank woes are behind us, in my opinion.
Let's review a few charts.
In the daily Japanese candlestick chart of KRE, below, I see a weak picture. The recent candles are red (bearish). I do not see long lower shadows showing that traders are rejecting the lows. I do not see a bottom reversal pattern.
The On-Balance-Volume (OBV) line remains weak and the Moving Average Convergence Divergence (MACD) oscillator can only manage a cover shorts buy signal.
In the weekly Japanese candlestick chart of KRE, below, I see a bearish picture. The three most recent candles look like a pause or continuation pattern in a longer decline. The slope of the 40-week moving average line is negative.
The weekly OBV line is pointed down and the MACD oscillator is bearish.
In this daily Point and Figure chart of KRE, below, I can see the most recent decline with a column of "O's." A trade at $40.99 should refresh the downtrend.
Bottom-line strategy: Fed watchers and bank experts will continue to get TV time to tell us that the regional banking crisis is behind us but the charts have not gotten the message. I would not be a buyer.
