Eoin Treacy's view

FTSE-350 Bank Index has been trending downwards since 2013 but is now accelerating lower. It closed at a new low today and a clear upward dynamic will be required to check the slide. 

Euro Stoxx Banks Index has been trending lower since last year and is now accelerating on the downside. The 2012 low near 72 may offer some support but a clear upward dynamic will be required to check the slide and the medium-term bias remains downwards. 

S&P500 Banks Index hit a medium-term peak last year and has posted two lower rally highs since. It confirmed resistance in the region of the trend mean four weeks ago and has now fallen to break the progression of higher reaction lows evident since February. The chart has Type-2 top with right hand extension characteristics and a sustained move back above the 200-day MA would be required to question the downward bias. 

S&P/TSX Financials Index broke below the trend mean today to signal a peak of more than temporary significance suggesting a deeper corrective phase is unfolding. 

The global underperformance of the banking sector is not a positive development for the wider stock market, suggesting the broad equity indices deserve an additional risk premium.