REGIONAL BANKS SHOW LEADERSHIP -- THAT INCLUDES BB&T, SUNTRUST, AND U.S. BANCORP -- CITIGROUP AND JP MORGAN CHASE MAY BE NEARING UPSIDE BREAKOUTS OF THEIR OWN -- GOLDMAN SACHS HAS HIT NEW HIGH FOR YEAR TO REVERSE PREVIOUS DOWNTREND
BANKS HELP BOOST FINANCIALS...Financials are one of the day's strongest sectors. And banks are a big reason why. The daily bars in Chart 1 show the KBW Bank Index finding support above its 50- and 200-day moving averages; as well as a rising trendline drawn under its two June reaction lows. That's a good spot for banks to find new buying. And many of them are. Second quarter bank earnings released this week showed some weakening in trading revenue; but also showed strong consumer spending. Which may explain why some regional banks (with bigger consumer businesses) are leading the banks higher.

REGIONAL BANK LEADERS...Three regional bank leaders are shown below. And the first two appear be breaking out of bullish symmetrical triangle formations. Chart 2 shows BB&T (BBT) trading between two converging trendines since March. The green circle, howeve, shows the stock rising above the upper line today. Those converging trendlines form a triangular formation which, in the context of the uptrend started by last December's bottom, is a bullish formation. Chart 3 shows a similar breakout taking place for Suntrust Banks (STI) from another symmetrical triangle. Both upside breakouts suggest a possible retest of their 2019 highs.
Chart 4 shows even stronger chart action by U.S. Bancorp (USB) which has risen above its late-2018 highs to reach the highest level since early 2018. Strong action in these three regional leaders bodes well for that entire group, and for banks in general.



CITIGROUP AND JPM TEST APRIL HIGHS...A couple of bigger bank stocks may be nearing upside breakouts of their own. Chart 5 shows J.P. Morgan Chase (JPM) nearing a possible challenge of its previous peak formed at the end of April (116.33). A close above that level would put the stock at an all-time high. Chart 6 shows Citigroup (C) already in the process of testing its late April peak. A decisive close above that intra-day high of 71.48 would put the stock at the highest level since last September.


GOLDMAN SACHS TURNS UP... There's one more bullish bank breakout that has already taken place. The daily bars in Chart 7 show Goldman Sachs (GS) rising above its spring highs to achieve a bullish breakout. But that's only part of the story. The weekly bars in Chart 8 show the stock also rising above a falling trendline extending back to the start of 2018; while also hitting a new for this year. That bullish combination ends the previous downtrend for the stock. And suggests that a new uptrend has begun. Chart 7 shows the blue 50-day average crossing above the red 200-day line (blue circle). That bullish crossover can also be seen on Chart 8 with the 10-week average crossing above the 40-week for the first time since May 2018 (blue circle). That's another bullish sign for the stock.

