Thursday, 10 November 2016

BAC - higher rates are bullish

Whilst the main equity indexes settled pretty mixed, there was notably powerful strength in financials, with Bank of America (BAC) settling +4.3% @ $18.75. The break above the $18 threshold is hugely significant. First stop is the psy' level of $20, and then 25/26... whether late 2017 or early 2018.

BAC, daily

BAC, monthly


Yesterday saw the algo-bots briefly test the $18 threshold. Today's close was extremely bullish. Now its merely a case of whether Nov' will settle >$18.

I've been waiting for this bullish break in BAC for a few years... and its finally occurred.

BAC >$18 has massively bullish implications for the broader equity market into 2017.. and probably at least part of 2018.

... as a number of other traders agree.