Chart of the Day - Wednesday, May 17, 2023

Today’s Chart of the Day was shared by Frank Cappelleri (@FrankCappelleri). The Regional Banking ETF ($KRE) rose +7.36% today, marking its best day in over two years. Frank points out that $KRE has established its first higher-lower since it began crashing in March. The low on May 4th came on record high volume, signaling capitulation. That low was successfully retested a week later on both an intraday and closing basis. While this bodes well for Regional Banks in the short term, the long term trend remains lower. It's still in a 50% drawdown, and it has a lot of overhead supply to work through.