Breakdown in banks?

The banks sold off this morning. While it is still early in the day, it looks like there's a breakdown in banks. There's a sell signal from the MACD and the RSI just put in a lower low. Meanwhile the banking index broke below support from the lows of early December.

However, the banking index is very oversold, and three of the heavyweights, BAC, C and JPM are siting on support. Perhaps one more move down is needed to confirm this breakdown

A bounce in banks?

While I am pretty bearish on equities in general and banks in particular, here's one bullish alternative that I can't seem to ignore. Banks could be due a bounce.



Ariel, over at Unbiased Trading, gives the bearish alternative.