10-YEAR YIELD NEARS 200-DAY AVERAGE -- REGIONAL BANKS CONTINUE TO LEAD -- HUNTINGTON BANCSHARES LOOK STRONG -- ANTHEM BREAKS OUT TO THE UPSIDE
10-YEAR TREASURY YIELD NEARS 200-DAY LINE... The rally in bond yields is continuing. Tuesday's message showed the 30-Year Treasury yield climbing above its 200-day average. Chart 1 shows the 10-Year Treasury yield heading for a test of its 200-day line after rising to the highest level in more than four months. Previous messages have pointed out that rising bond yields are giving a boost to financial stocks, and banks in particular. Tuesday's message showed regional banks leading the bank rally. And they're doing so again today.
Chart 2 shows the S&P Regional Banking SPDR (KRE) challenging its August peak after clearing its 200-day line. Tuesday's message showed regional bank leaders to be Comerica, Regions Financial, and Fifth Third Bancorp. All three are doing well again today. Today's financial leader board adds another regional bank leader.
Chart 3 shows Huntington Bancshares (HBAN) trading above its August high after clearing its 200-day line.
ANTHEM BREAKS OUT TO THE UPSIDE... Last Friday's message showed three health care providers trading in record territory, including Molina, Humana, and UnitedHealth Group. The message suggested that Anthem (ANTM) might also be on the verge of a bullish breakout. Chart 4 is an updated version of the weekly chart shown in that earlier message. And shows Anthem trading below previous highs extending back to the start of 2019. It was suggested that a close above the summer high near 300 would increase the odds for a new record. The green circle shows that upside breakout taking place today and paving the way for a challenge of its 2019 high near 311. The daily bars in Chart 5 give a closer look at today's upside breakout in the healthcare provider.
