KBE bear signal

The exchange-traded fund KBE, which tracks the KBW Bank Index, is showing a psar bear signal with a high adx, backed by a declining bull-territory macd and a sto that today moved from overbought to the neutral zone.

	trend	adx	psar	pps	macd	sto
KBE $25.40

I posted earlier to say I would analyze this position. At second glance, I don't like it so much. It's countertrend, and the adx no doubt applies more to the run up from early January rather than a pending run down.

But let's run some levels anyhow.


You are here:

• Reversal
• $30.72, +20.9%
• $26.13, +2.9%
• Now $25.40
• Reversal
• $24.78, -2.4%
• $22.98, -9.5%
• $21.51, -15.3%
• $21.13, -16.8%

 I like the wide spacing between reversal levels. But the countertrend nature of the move, by my rules, is a deal killer at this point. Yes, I see the lower high and lower low. If I see a bounce up from today that fails to reach the $28.13 reversal level, and then moves down further to an additional lower low, then I'll get interested.

Abbreviations:
psar - Parabolic Stop and Reverse
adx - Average Directional Index
pps - Person's Proprietary Signal
ma20 - 20-day moving average
macd - Moving Average Convergence-Divergence
mfi - Money Flow Index
sto - Fast Stochastic

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Abbreviations: psar - Parabolic Stop and Reverse, adx - Average Directional Index, pps - Person's Proprietary Signal, ma20 - 20-day moving average, macd - Moving Average Convergence-Divergence, mfi - Money Flow Index, sto - Fast Stochastic

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This signal will be followed in the daily Watchlist, which is posted beginning around 2:45 p.m. Eastern. Look for it at www.timbovee.com.