The KBW bank index etf leads the S&P 500, according to Nomura technical analysts.
The firm’s research suggests the each time the KBW reaches a new high, so does the S&P 500. Similarly, when the KBW index reaches a new low, so too does the S&P 500.
But do you trust the KBW to confirm new lows and highs? Or do you believe that financials just represent a large portion of the S&P, and so it’s no surprise the two move together?
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