When it comes to investing, bank stocks have been making a comeback since the regional bank crisis in 2023. While some have fully recovered, like JPMorgan, many are still below their previous highs. As we analyze the charts, it seems a new breakout could be around the corner.
Two popular bank ETFs, the SPDR S&P Regional Banking ETF (KRE) and the SPDR S&P Bank ETF (KBE), share similarities but also have key differences. KRE focuses on regional banks, while KBE includes regional and big money center banks. KBE’s market cap is significantly larger due to holdings like JPMorgan.
Both KRE and KBE have shown bullish patterns in their charts, with potential breakout attempts on the horizon. KBE is testing previous highs and could target $52, while KRE is close to breaking out of its own bullish formation. The overall trend for banks has been positive, with higher lows being made since last spring.
Interest rates play a significant role in the performance of bank stocks. The rise in rates has contributed to the rally in bank ETFs since late 2021. While it remains to be seen if banks will outperform in the long term, their charts indicate a continuation of their comeback stories.
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