Today at 5 PM EST on Mish’s Market Minute Daily Facebook page live, I introduced Prodigal Son, Regional Banks.

I began with a joke about a stock broker and a minister. Both show up at the Pearly Gates.

The stock broker gets a silk robe and golden staff, the minister a cotton robe and wooden staff.

When the minister asks why, St. Peter says, “While you preached, people slept. But while he invested, people prayed!”

Hence, Regional Banks earns the label Prodigal Son.

KRE, his ETF symbol, has periods of wastefulness coupled with periods of high productivity.

Regional Banks is a key sibling in the Modern Family because he measures the health of the U.S. Regional Banks, where many local folks put their money.

Today, KRE got a boost.

Were investor’s prayers answered?

In the cartoon, KRE, the Prodigal Son stands in his office at a Regional Bank. He tends to be Bullish on America.

He leans on his desk for support. He’s always ready to ask for forgiveness just in case he cannot do right by his customers.

His cat (or one might say KRE’s alter ego), on the other hand, has unabashed confidence that whatever the Regional Banks do is always the right thing at the right time.

KRE is a reliable indicator of what the Federal Reserve might do regarding raising or lowering interest rates.

Coincidence that KRE, which had been sitting dormant on the 50-day moving average, would gap higher and close strong ahead of the Federal Reserve Minutes due out tomorrow.

If I were Janet Yellen and gang, I’d be thinking time to strike while the iron is hot.

Bullish sentiment is high. The Russell 2000 (IWM) whom you met last week in cartoon form, trades above the monthly channel line and on new all-time highs.

Granddad IWM or father to Regional Banks, typically opens his arms wide to welcome back his Prodigal Son.

Even when Prodigal spends lavishly and returns home broke, IWM’s love is unconditional.

Grandma Retail of the brick and mortar ilk, also gave KRE a hug. XRT rallied back over the 50-DMA and into an unconfirmed Recovery Phase.

Transportation (IYT) may not be so convinced. Although it rallied and closed higher, that higher close is deceptive.

IYT closed on the intraday low and below resistance.

Biotechnology, Regional Banks Big Brother and rival, closed lower. Most likely because the money rotated to financials today.

Good. That 5th Stage of Disbelief begins.

You know. The one where everyone buys buys buys.

The blow off ensues and Prodigal returns to his lavish ways.

S&P 500 (SPY) After that teeny runaway gap, this has held up and made another new all-time high. Biggest gainer? Freeport—McMoRan (FCX) up over 14%.

Russell 2000 (IWM) 142.90 big number for the month end close. Above, holds over the top of the monthly channel. A close below, could be perceived as a failure

Dow (DIA) Popped back over the 10-DMA in sympathy to the others

Nasdaq (QQQ) 144 pivotal held even with FANG weakness

KRE (Regional Banks) Still has to clear 56.50, but today was impressive nevertheless.

SMH (Semiconductors) 86.68 pivotal area ultimately held.

IYT (Transportation) If can clear 172.50 much better. If fails 168.90 I’d take heed

IBB (Biotechnology) Got 10 cents shy of target at 330. Then a nasty red candle happened. For now, let’s call it rotation to financials.

XRT (Retail) Unconfirmed recovery phase. Needs a second close over 40.42

IYR (Real Estate) After three waves lower, should this clear back over 81.50 BUY! 78.50 support

GLD (Gold Trust) 119 pivotal zone failed. Support at 117.75

SLV (Silver) 15.25 pivotal support and 15.80 resistance to clear

GDX (Gold Miners) Has to clear 22.80

XME (S&P Metals and Mining) Copper helped

USO (US Oil Fund) Unconfirmed return to a recovery phase. Needs a second close over 9.60

TAN (Solar Energy) consolidating

TLT (iShares 20+ Year Treasuries) Below 122.80 would be indication of higher rates to come

VXX (Volatility Index) Some drama but still no real fear

UUP (Dollar Bull) Bouncing off the 200 week MA.