wink - Excellent post.SanFelipe - yep - CBA - very good point.If...

wink - Excellent post.

SanFelipe - yep - CBA - very good point.

If this is a genuine break down (also, NAB's short term triangle break down on Friday) then falls from here could be very significant to the index - eg. CBA could fall down to $25 from here (though it might hold $35 in the shorter term).

Looking at the XFJ on the weekly, IMO we also have a channel breakout downward, which again - if this is a genuine break - would suggest the next set of large falls in the banks are imminent and so the index could come under pressure again.

Or perhaps we see a shift from the banks to resources which could hold the index at these levels in the meantime? Or are these just false breaks which are setting a bottom?

Anyway, as you nicely pointed out SF, bottom line is the banks are worth watching closely at the moment.