REGIONAL BANK LEADERS INCLUDE SUNTRUST, CITIZENS FINANCIAL, AND BB&T -- ALL THREE APPEAR TO BE FORMING SYMMETRICAL TRIANGLES

TRIANGLES ON DISPLAY...Today's earlier message showed the S&P Bank SPDR (KBE) trying to rise above its 200-day moving average. It also mentioned that regional banks were leading today's bank rebound. While drilling down through some regional bank charts, I noticed that many of them have something in common. First, many of them are trading above their moving average lines. More importantly, many of them appear to be forming symmetrical triangles which are usually bullish formations.

Chart 1, for example, shows Suntrust Banks (STI) trading between two converging trendlines since early March. And it's now testing the upper resistance line. Chart 2 shows Citizens Financial Group (CFG) in a similar triangular formation marked by two converging trendlines. Chart 3 shows BB&T Corp (BBT) testing the upper line in a similar triangular formation. Prices still have to clear upper resistance lines to signal bullish breakouts. But the shape of all three triangular formations have a bullish look to them. It remains to be seen how banks in general react to any action (or inaction) taken by the Fed between today and July.