$BKX Analysis for 10.21.2007

KBW BANK INDEX - $BKX

Monthly chart shows selling since February 2007.

Weekly chart shows index to be below all its key moving averages and testing its prior support.

Daily chart shows abc 3 wave corrective pattern in place ... with wave 3 impulse move down. Look for a break of the low and lower.

One can play the $BKX through the KBE etf:

KBW BANK ETF - KBE

Monthly chart below the 8ema.

Weekly chart shows price to be below all key moving averages.

Daily price shows abc 3 wave pattern in place ... current move down looks like impulse wave. Look for continued weakness and for price to break the db and head lower.