BANKS HAVE A STRONG DAY -- KBW BANK INDEX REACHES THREE MONTH HIGH -- REGIONAL BANK LEADERS ARE FIFTH THIRD, KEYCORP, AND REGIONS FINANCIAL -- JPM NEARS A NEW RECORD -- GOLDMAN SACHS RESUMES UPTREND -- BAC REACHES THREE MONTH HIGH

BANK INDEX TURNS UP...Stocks are having another strong day, with sector leadership coming from materials (led by commodity chemicals) and industrials (with help from airlines).  Semiconductors continue to lead technology higher.   Financials are also having a strong day, led by banks.    We're going to focus on banks today.  Chart 1 shows the KBW Bank Index jumping enough today to clear its early July high to reach the highest level since early May.  That's a good sign from a group that's been lagging behind the rest of the market all year.  That be seen by the rising histogram bars in the BKX/S&P 500 ratio.   An uptick in bond yields today may be helping.  Several regional banks are having an especially strong chart day.

REGIONAL BANK LEADERS...Three of today's bank percentrage leaders are shown below.  Chart 2 shows Fifth Third Bancorp (FITB) rising above its early May peak to the highest level since September.  Chart 3 shows Keycorp (KEY) bouncing sharply off its 50-day moving average and nearing a new high for the year.   Chart 4 shows Regions Financial (RF) rising above its 200-day average and nearing a three-month high.  Some big banks are having a strong day as well.

JPM NEARS RECORD HIGH... GOLDMAN SACHS AND BANK OF AMERICA ALSO GAIN MORE GROUND....Chart 5 shows JP Morgan Chase (JPM) nearing a test of its late April peak which would put it at a new record.  Chart 6 shows Goldman Sachs (GS) resuming its uptrend which has put it at the highest level since November.   Chart 7 shows Bank of America (BAC) jumping to a new three-month high today.   Chart 8 shows Citigroup (C) also nearing a new high for the year.