Bears Need to Decide if the Bank is Worth the Risk
For the second session in a row, banks are lagging the tape as they continue their post-Fed rate hike "sell the news" reaction. The Wells Fargo daily chart, below, illustrates as much, with WFC losing some intermediate-term trend support today (or at least intraday).
It would certainly behoove bears to make a push in the broad market lower in light of this action. However, at the moment the market is giving the look and feel of yet a other slow day of consolidation.
A few of our Members are either looking at this action as distribution (part of a topping process) or a good trap being set by bears to spring it overnight in the futures markets with a sharp gap down.
To be sure, those interpretations should be respected given that bulls also had better start sustaining some upside momentum themselves in lieu of the usual momentum fizzling out like we have seen of late.
More on this and plenty of other ideas below the surface in my usual Midday Video.