The big banks start the earnings season this week as Citigroup (NYSE:C) and JP Morgan Chase (NYSE:JPM) report before the open on Thursday. On Friday both Bank of America (NYSE:BAC) and PNC Financial (NYSE:PNC) also report earnings.
As the stock market makes further new highs early Tuesday traders with profits in the banks stocks are wondering whether they should sell before earnings or hold for even more gains.
The SPDR KBW Bank ETF (NYSE:KBE) is up over 14% from the September lows and it formed a doji last week. Therefore a Friday close below $44.57 will generate a weekly doji sell signal. KRE tested its daily starc+ band last week but is still below the more important resistance at $46.65-$47.16.
There is first good support now at the rising 20 day EMA which stands at $44.15 with the former downtrend (now support) at $43.36, line a. This is very close to the monthly pivot at $43.38 and the current 38.2% Fibonacci retracement support.