No doubt about it, bank stocks have been taking a beating lately.
Since the start of March, the S&P Banks Select Industry Index has shed more than 11% of its market value - meanwhile, the broader S&P 500 Index itself is actually up over that time frame. And even worse, many of the biggest banking stocks on Wall Street look ready to roll even lower this summer.
Simply put, if you own one of these big banks, look out below.
There's a "but" to the bank stock story, however. One of these stocks is not like the other - in fact, one gigantic bank is actually uncoupling from the rest of the banking sector, teetering on the edge of a clear-cut buy signal in June.
To figure out which bank stock to buy - and which you should unload this summer - we're turning to the charts for a technical look at the major signals in the sector (and when you should pull the trigger on them).
In case you're unfamiliar with technical analysis, here's the executive summary: technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution.
So, without further ado, here's a rundown of three technical setups that are showing solid trading potential right now.