Early last week, the KBW Nasdaq Bank Index (BKX) reached new August highs. By Friday’s close though, the index had reversed and was well into new monthly low territory and looked headed for a steep sell off. As this week begins, a number of major banks are rebounding nicely. European banks are on the rise as well.
However, caution on the sector may still be warranted.
Here’s a quick look at three key components in the BKX Index. Bank of New York/Mellon (BK) is the No. 1 weighting.
