Bank Stocks In Decline: A Price Chart Analysis

The effects of the contagion fear were immediately apparent as the Silicon Valley bank collapsed and the share price of bank stocks across the country plummeted.

Photos and video of customers in line Outside the closed doors of a Silicon Valley bank branch – waiting to get their money back – investors in the financial institution have sold off their shares.

“why wait?” Wall Street views when Scene from the Jimmy Stewart classic film It’s a Wonderful Life Start playing in real life. The Federal Deposit Insurance Corporation has been on the case all weekend, but as of Monday morning, who knows how many other regional banks face similar issues?

The stock market seems to be finding out and the selloff started at the open on Friday and lasted through the day. Here are the price charts to prove it.

Daily chart for the benchmark ETF known as Financial Select Sector SPDR Fundaka xlf
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Here it is:

It looks like those who follow the sector closely started offloading shares on Tuesday and actually on heavy volume (the red colored bar below the price chart) on Friday before going down from December lows. Sales picked up on the first Thursday. Those who were aware of the situation were already coming out.

The fund has 67 holdings, the largest of which is Berkshire Hathaway.
BRK.B
(down .39% Friday), JPMorgan (up 2.54% Friday) and Bank of America
BAC
(down .88% Friday). As you can see, these big financial institutions didn’t suffer much – the bigger losses came from regional banks.

take a look at Daily Price Chart for the SPDR S&P Regional Banking Index,

So that’s a Friday session of -4.39% for the regionals versus -1.82% for the majors. kre
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It includes 143 bank components and one of its largest holdings was Silicon Valley Bank which until recently represented about 2% of the fund, but no more.

The top 3 constituents of the fund are now Western Alliance Bancorp (2.15% of the ETF), East West Bancorp
EWBC
(2.13%) and Truest Financial
TFC
Corporation (2.08%).

is here western alliance bancorp daily price chart,

From the $80 level in early February to the $30 level during Friday’s session before closing the week at $49 – that’s quite a range and exceptionally heavy. Buyers entered late in the session and pushed the stock above the lows.

east west bancorp daily price chart looks like this:

There is a quick decline of 23% from peak to trough in early February from above $80 to low of $61. You don’t see too many daily charts that show a recent high above previous resistance areas (mid-August, 2022) and then, just a few months later, a new low established below previous support areas (late June, 2022). display. ,

is here Daily price chart for Truest Financial Corporation,

This illustrates the mistake of early trading in mid-January that saw many NYSE-listed stocks suddenly take them very high and then drop them down again. Truest sellers outnumbered buyers every day this week, with Friday’s dumping taking the price below mid-October lows.

These 3 regional bank charts show just a taste of the damage caused by the Silicon Valley bank collapse and closure scare. Majors like JP Morgan ended the day with 2+% gains, indicating that the outcome of the overall situation will benefit much larger banks.

Not investment advice. For educational purposes only.