By Jeff Clark, editor, Market Minute The bank stock rally finally kicked into gear. And, there’s more upside ahead. We noted the potential for a bank stock rally last month. The chart of the KBW Bank Index (BKX) had started to move higher. It had just crossed above all of its various moving average lines. And, that’s the typical sort of action we get at the start of an intermediate-term rally phase. | Recommended Link | It's Finally YOUR Chance To Catch Up Tonight at 8 pm ET, Teeka's unveiling a small subset of cryptos that: -
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BKX has rallied up to the first resistance line of its June high. This is a natural area at which the sector should pause, and perhaps even pullback a bit. The Commodity Channel Index (CCI) – a momentum indicator – is overbought. And, similar conditions have led to pullbacks in the bank stocks before. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just click here to check it out. | But, look at the other momentum indicators like the MACD and the RSI. They’re still in neutral territory – well below the levels they hit back in June. There’s still plenty of room for them to work higher before reaching overbought levels. And, there isn’t any sign of “negative divergence” where the index moves higher and the indicators move lower – which would be a warning sign for an impending reversal of the trend. The 3 Best Pandemic Stocks So, it looks like this rally in the bank sector is the “real deal.” At a minimum, BKX should challenge the next resistance level, near 96, in the weeks ahead. And, if the rally really explodes, it’s possible the index could make it all the way up to 110. Traders should take advantage of any short-term weakness in the sector and buy the banks. Best regards and good trading, 
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