The 10 - year is currently yielding 1.697 % +0.024, so looking for rates to back up to (and through) 1.90% is a bit of a contrary bet but if it happens bankers (and longs) will be happy....
The S&P SPDR bank stock ETF performed:
And here we are at another make-or-break point in time and
From Kimble Charting Solutions, December 9:
Are Bank Stocks Sending Bullish Message To Investors?
Just as the health of the banking sector is a big deal to the economy, it’s equally important to the S&P 500 (SPY) and broader stock market.
Although the bull market has grinding higher, it’s awaiting confirmation from the banks and banks stocks.
Today’s chart is of the S&P 500 Bank ETF (KBE) and shows how the banks are at an important juncture in time and price....MORE
What would get things going would be another increase in yields at the longer end. From today's 1.8240% on the 10-year, backing up to the 2.00 - 2.05% range should give the banks room to make some money and give lift-off to the stocks.
Remember, there are two ways to steepen the curve: the bad way, the Fed lowers the short end reacting to weakness; the good way, the market raises the longer end anticipating strength.
KBE $46.48 down 0.11 (-0.24%)
XLF $30.30 down 0.005 (-0.02%)
