Chart of the Day - Thursday, March 9th, 2023

Today’s Chart of the Day was shared on Twitter by Mike Zaccardi (@MikeZaccardi). The Regional Bank ETF ($KRE) had its worst day since June 2020 today, sinking 8.18% to its lowest level in more than two years. This equally weighted ETF has over 140 components and every single one of them closed lower by more than 1%. One component, Silicon Valley Bank ($SIVB), crashed more than 60% today! Today's action confirms a bearish head & shoulders pattern that has formed over the past two years. $KRE is now decisively below the neckline of that pattern now, which is around $57. This level served as support three times throughout the bear market in June, July, and December of last year. This breakdown sets an ominous tone for the major indices, as Regional Banks are an important piece of the broader market puzzle.