The Bank Stock Index bounced sharply on Friday from a Hidden Pivot support of middling importance. The big picture, however, as shown in the weekly chart (see inset), shows weakness that would not be cured unless BKX rallies 40% from these levels, surpassing a key high at 83.43 that was recorded back in 2008. That peak otherwise remains as the point ‘A’ of a long-term downtrend that projects to at least 48.03, the midpoint Hidden Pivot of the pattern; or to 31.61, or even 15.19 if any lower. As such, any rally back up to the green line at 64.45 would beg to be shorted ‘mechanically’ with a stop-loss at 80.81. I’ve set a screen alert if BKX should get there, so stay tuned to the chat room for further guidance. If the opportunity looks sufficiently enticing, I will provide a put-option alternative to naked-shorting the stock. _______ UPDATE (February 29, 10:12 p.m. ET): Zzzzzzzzzzzz.
