Navigating the Island of Rates

With TLT finally catching some type of bounce which appears to be holding, we can see the fade in regional banks. 

On the weekly chart of the KRE, regional banking ETF, elbow, note the weekly candlestick forming, pending today's close. The long shadow at the top of the candle signifies sellers presenting themselves above the key $42 level. 

Typically, when rates rise regional banks can outperform. In this case, regionals were threatening a major breakout during the bond sell-off (and rising rates) in recent weeks. But they did not seal the deal. 

Still, the correlations seem to be running tight with regionals and other sectors, which is valuable information in and of itself into the summer months.