“As The Banks Go…” – And Right Now They’re Breaking Bad

Big banks breaking down

"As the banks go, so goes the stock market.”

Banks are often seen as a leading indicator for the broader economy and equity market because they sit at the center of credit creating, lending and liquidity. BKX (KBW bank index) has been taking it on the chin lately and Hartnett even goes so far as to say that they are "breaking down". Let's have a look at the bank sector in greater detail.