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“So Goes the Banks, So Goes the Broad market” was pretty true in the window from 2007- 2009 as they both went down together. Last year this quote seemed to apply, as Banks were a leading sector and the broad market did well too.
Bank of America (BAC) gained 4 times as much as SPY since November of 2011. This rally in BAC has it facing a few resistance lines at (1) in the chart above.
How BAC handles this resistance becomes a tad bit important, because several Banks are facing similar resistance at this time. (See JPM, C, GS resistance post here)
Also check this out this out “Broad Market at the Mercy of this Sector?” (see post here)
BAC, Banks and broad market bulls wishes should be ….BAC kicks this 800 Pound Gorilla to the side and moves on!