These 7 Big Banks Are Deep Into Bear Market Territory. Should Investors Try To Catch A Falling Knife?

Bank of America (BAC), Citigroup (C), JPMorgan Chase (JPM) and Wells Fargo (WFC) are the four big banks considered ‘too-big-to-fail.’ Truist Financial Corp (TFC) and US Bancorp (USB) are also big banks and each set 52-week lows on March 16, 2023. PNC Financial Services Group Inc (PNC), Bank of America and Wells Fargo set their lows on March 24.

The Daily Chart for Bank of America

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The daily chart for BAC shows a death cross formation that was confirmed on April 13, 2022. This occurred when the 50-day simple moving average fell below the 200-day simple moving average.

The horizontal lines from top to bottom are the quarterly, annual and monthly risky levels at $44.28, $41.97, and $37.47, respectively. The bottom line is the semiannual pivot at $33.84, which failed to hold on March 7. Note the death cross formation that was confirmed on March 21.

The Daily Chart for Citigroup

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The daily chart for Citigroup was below a death cross formation that was confirmed more than a year ago. A false golden cross occurred on February 17, 2023. The stock failed to hold its quarterly pivot at $50.69 on March 9, 2023. This is the horizontal line in the middle of the chart. The upper horizontal line is the annual risky level at $63.68.

The Daily Chart for JPMorgan Chase

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The daily chart for JPM shows a strong rally since trading as low as $101.28 on October 12, 2022. A golden cross occurred on December 7, 2022 when the 50-day simple moving average rose above the 200-day simple moving average.

The horizontal lines at the top of the chart are the monthly and quarterly risky levels at $144.81 and $151.03. The stock failed to hold its 50-day simple moving average at $139.07 This led to the downside to $125.45 on March 17, 2023. This was above the 200-day simple moving average at $125.25 and the semiannual value level at $124.15.

The Daily Chart for Wells Fargo

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The daily chart for WFC shows two horizontal lines. At the top is the monthly risky at $50.48. Near the bottom is the annual pivot at $40.90. The stock traded as low as $36.54 on June 16, 2022. The high for 2023 was $48.84 set on February 14, 2023. The decline from this high was rather quick.

The 50-day simple moving average failed to hold at $45.09 on March 7. Then the200-day simple moving average failed at $43.80 on March 8. The annual pivot at $40.90 was a magnet between March 9 and March 14. This week’s low has been $36.51 on March 23.

The Daily Chart for PNC Financial

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The daily chart for PNC shows two horizontal lines at the top of the graph: the annual and quarterly risky levels at $197.33 and $199.86. The horizontal lines in the middle of the chart are the semiannual and monthly pivots at $157.76 and $162.82.

In the upper left hand corner of the chart is a death cross which remained in play in March 2023. Failure to hold the 50-day and 200-day simple moving averages at $159.22 and $160.33 on February 28 led to the weakness to $120.95 set on March16.

The Daily Chart for Truist Financial

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The daily chart for TFC shows two horizontal lines at the top of the graph: the quarterly and annual risky levels at $55.35 and $55.95. The horizontal lines in the middle of the chart are the monthly and semiannual pivots at $45.63 and $46.91.

In the upper left hand corner of the chart is a death cross which remained in play until March 1, 2023. Failure to hold the 50-day and 200-day simple moving averages both at $46.61 on March 2 led to the weakness to $28.70 set on March16.

The Daily Chart for US Bancorp

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The daily chart for USB shows two horizontal lines at the top of the graph: the annual and quarterly risky levels at $53.40 and $54.43. The horizontal lines in the middle of the chart are the monthly and semiannual pivots at $45.06 and $41.05.