Bank Stocks - Breakout or Breakdown?

$KBWB

The KBWB 0.00%↑ is at an interesting inflection point, the resolution of which will likely determine the direction of the longer term trend. LEt’s start with the universe I’m talking about -

The KBWB 0.00%↑ briefly broke to new all-time highs about 2 weeks ago, and currently sits at the November gap up level where the move started. There’s about 7% downside to fill that gap. The short side of the trade isn’t something I’m particularly interested in, rather, I’m watching for support to form in this area. If bank stocks can find their footing inside this range, there should be a nice setup forming for them to take out prior resistance (which around $70 on the KBWB 0.00%↑ ). If not, the sector becomes untouchable. But January will represent nearly 3 years since prior highs were made. I’m inclined to think we’re closer to that getting taken out.