KBE Watch

The KBW Bank Index etf, KBE, is showing a bull signal on the parabolic sar after a three-day bear-phase.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
KBE $28.64

The signal is in line with an uptrend that began Feb. 5.


With an average directional index of 38, KBE is a strongly trending issue. Even so, it has done two three-day whipsaws during its long rise -- the one just ended and one in mid-March.

You are here:

• Reversal
• $29.22
• Now $28.64
• Reversal
• $26.45
• $25.50

A break above the upside reversal level brings KBE into an area of massive congestion dating back to 2008 and stretching all the way up to $35. So I think it will be a tough slog for this issue to make upward progress.

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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.

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

Exchange-Traded Fund Symbols:
EEM - emerging markets
EUR/USD - euro/dollar currency pair
GLD - gold
JNK - high-yield corporate bonds
SPY - blue-chip stocks
TLT - Treasury long-term bonds
USD/JPY - dollar/yen currency pair
USO - crude oil
VIX - fear index

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.

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