BUZZ-Techs suggest regional bank index up trend may resume

+0.34%

+0.61%

+1.08%

+1.95%

Dow Jones Industrial Average DJI	46175.04	+0.34%
S&P 500 index SPX	6640.70	+0.61%
NASDAQ IXIC	22501.78	+1.08%
Spdr Series Trust S&P Regional Bkg ETF KRE	65.70	+1.95%

** KBW Regional Banking index .KRX rallied to 7-session high of 95.13
** The 61.8% Fibonacci retracement of 103.80-79.75 drop was pierced

** Rally stopped just short of Nov. 17 daily high at 95.27

** Gains aided by US yield US2YT=RR drop and the latest US Q3 GDP report

** Recent price action has technicals suggesting rally off Oct low will resume

** Weekly, daily relative strength indexes (RSI) imply upward momentum in place

** KRX also consolidating gains off Oct. 25 low, another bullish sign

** U.S. Oct Core PCE, weekly claims, Nov ISM mfg PMI data risks loom

** If yields sink & risk rallies after data, regional bank index may resume rally

** 76.4% Fibo of 103.80-79.75 drop, Aug. 14 low will come into focus

** Beyond those impediments Jul high, channel top become targets

** KRX last up ~3% at 95.03

(Christopher Romano is a Reuters market analyst. The views expressed are his own)

((christopher.romano@thomsonreuters.com))

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