The credit crunch is over, right? The banks are a-okay.Not according to NBC analyst Richard Crossley who on Tuesday issued this dark warning:
The theme of weakness in prospect in the Financials, and especially in the Banks sector, has been very prominent here for many months and needs no repetition. The theme applies equally to all of the major equity centres. But there is good reason for the view that the global sector is about to embark on a renewed phase of serious weakness.
This closely-followed technical analyst points to new breakdowns in the UK - typified by the charts of RBS, Barclays and Lloyds TSB.
The same comment, adds Crossley, applies with equal force to the financial sector generally.
This process is led by the American Financials, as it has been since turmoil began to impact on global markets some months ago. The American Banks sector is now embarking not just on a renewed phase of underperformance but on actual price falls. The American Banks sector rallied briefly and anaemically a fortnight ago, but recent action has quickly negated that.
Failed rally, failed break or false breakout - this sort of chart terrifies technical traders.
So here’s some of the others: