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Bank Shares Underperforming, S&P Through Technical Support

US STOCKS
  • While Treasury futures remain well bid on position unwinds ahead of Friday's headline employment data, stocks have not fared as well.
  • Front-month e-mini S&P futures are extending session low around 3947.0 at the moment vs. midmorning high of 4018.00 appears to be tied to heavy selling in bank shares: Silicon Valley Investment Bank (SIVB) currently -54.28% to 122.61 after announcing stock sale plan of "$1.75 billion share sale to shore up its balance sheet and navigate declining deposits from startups struggling for funds amid increased spending," Reuters reported earlier.
  • Other bank stocks underperforming: First Republic Banks (FRC) -14.89% to 97.78, SBNY -9.23% to 93.81.
  • From a technical perspective, S&P emini futures are through initial support of 3971.5 (March 8 low) with second support at 3925.00/3901.75 (Low Mar 2 / Low Jan 19) that represent a bear trigger and a break would confirm a resumption of the bear leg that started Feb 2. For bulls, clearance of 4082.50, the Mar 6 high, is required to reinstate a bullish theme.

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