Will Citi Get Another Bailout?
Despite various upside spurts this week, such as yesterday's broad market rally, the lingering issue for the market beyond energy weakness has been the lagging big banks.
Even though the major financial firms are still well above their pre-U.S. election levels from last early-November, the truth of the matter is that they are looking heavier by the day. Thus, we should not dismiss a scenario where they move closer to retesting those prior breakout levels.
With the lion's share of big banks already having reported earnings this season, a name like Citi, below on the daily chart, exemplifies the dilemma facing banks at the moment---Still above levels from last autumn but that not ought be a crutch.
Beyond that, Citi is leaning rather heavily of late on well-defined trend support (lower light blue line), which may start to matter more to Nasdaq bulls if not salvaged next week, French election fireworks or not.
More in my usual Midday Video for Members.