State Street Daily Chart.
Another jump in yields has sparked a sharp rally in banks. The KBW Bank Index is up 2.5% in today’s early going. State Street Corp (NYSE:STT) is one of a number of big gainers in the sector. Shares are up just shy of 4% as the March rally extends to 10%. This morning, the stock is piercing a key overhead trendline (links previous two monthly highs) as it heads for 2021’s best close.
STT has been trading in a fairly narrow range since the Nov. 9 vaccine ramp. A close above $81.00 would take out the top band of this consolidation.
STT is far from overbought despite trading near multi-year highs. Daily MACD has been trending near neutral since early February.
We believe STT is set up well for a retest of the 2020 high($86). On the downside, a close back below this week’s low ($74) would indicate more range bound action is ahead.
Note: We are long STT in some managed accounts.
You can read Gary S. Morrow’s original post here.
State Street Is Surging
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