Good morning Traders!
Yesterday the chairman of Saudi National Bank, which is Credit Suisse largest shareholder said that they will not provide further capital to the bank. That caused the share price to tank to all-time lows and intensified fears in the market for the banking sector, and after the collapse of Silicon Valley Bank and New York’s Signature Bank last week, it has many asking the question – who’s next!?
SPDR S&P Regional Banking ETF (KRE)
It’s not the first time that Credit Suisse finds itself on the bad side of the news, they had scandals after issues after scandals to contain. But with all this bad behaviour, we read that actually, when it comes to deposits, they had shore up their liquid assets (unlike SVB!), in case depositors will have a run for their money.
So will Credit Suisse be next? Time will tell, however the story of regional US banks, written in the SPDR S&P Regional Banking ETF is one I am following closely!
The Monthly chart has now confirmed a downtrend, and with the selloff passing through the 46.5 level, the market may be poised to test it’s 2020 lows.
There are a few areas (50, 54, 56) that I am stalking on the Weekly chart for potential pullbacks to release some of this strong selling pressure, then, I’ll be looking for a rollover setup around these levels, to signal that the pullback is over, and the market may be ready to continue it’s higher timeframe trend.