Canaries in the Vault

Tell me what you've got on your mind
'Cause we're running out of time
--Fine Young Cannibals

The banks have been trading conspicuously heavy as of late. The bank index itself has been flirting with its support line in the 102-103 area for months.

If the 'strong economy' headlines were correct, then one would think this sector would be trading much better than it has been.

On the other hand, in a leveraged economy, a good rule of thumb is that the banking sector is one of the canaries in coal mine, er vault, should trouble begin to brew.

position in SPX