Negative divergences in the nominal relative to gold-adjusted price of the banking stocks illustrate dangerous stock market rallies and precede significant bear markets. Notable negative divergences which can last for years anticipated the severe bear markets of 1973-1974 and 2007-2009. The banking stocks have been underperforming gold since 2010. This has created another negative divergence. This is the market's way of saying caution and watch out for the bear market of 2015-2017.
Chart: S&P Banking Index (Banks) AND Banks to Gold Ratio
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