Below looks at the Bank Index/S&P ratio. When the ratio is moving up, banks are stronger than the broad market. When the ratio is moving lower, banks are underperforming the broad markets.

Unless one lives under a rock, you are most likely aware of how strong the banks have been of late. Could strength of late actually be followed by weakness/under performance for the next 1 to 3 years?

(Click on image to enlarge)

The strong outperformance of banks of late, has pushed relative momentum up to levels seen only a few times in the past decade.

Joe Friday Just The Facts; Banks have underperformed that broad markets for the following 1 to 3 years.

At the same time momentum is lofty the Bank/S&P ratio is testing “dual” channel resistance at this time.