SPDR S&P Banks ETF (KBE)

Bank stocks have struggled.

KBE’s breakout from its December 2024–August 2025 bullish continuation head and shoulders pattern has failed, putting the ETF at risk of closing below its 26- and 40-week moving averages near 56–55 this week. Key support lies at the shoulder lows (54.42–53.06) and the 38.2%–61.8% Fibonacci retracement zone (55.52–51.25). Holding this area could set the stage for a larger base formation—potentially a new bullish head and shoulders or cup and handle—with neckline resistance near 62.44. More details and charts below.

Stay tuned...

A failed breakout from a bullish head and shoulders pattern

KBE failed to hold its breakout from a December 2024 into August 2025 bullish continuation head and shoulders pattern (Aug 14 The Chart Check). KBE is at risk to close below its 26- and 40-week moving averages (WMAs) at 56.59-55.78 this week. The shoulder lows offer potential support at 54.42 and 53.06. The 59-60 area offers a tactical resistance.

Chart 1: SPDR S&P Banks ETF (KBE) with failed breakout

Watch important Fibonacci retracements from 55.52 down to 51.25

KBE shows important Fibonacci retracement levels for the early April-early September rally at 55.52 (38.2%), 53.38 (50%), and 51.25 (61.8%). Holding these retracements is important and would suggest a normal corrective phase for the April-September rally. KBE has tested the 38.2% level, but we would not rule out a deeper retracement especially if October volatility continues.

Chart 2: SPDR S&P Banks ETF (KBE) with important retracement levels

Could KBE put in a bigger base?

If the shoulder lows (54.42-53.06) and/or the Fibonacci retracement zone (55.52-51.25) hold as support, KBE could form a bigger base with the neckline resistance trigger point at 62.44. This could take the form of a bullish head and shoulders or cup and handle pattern, especially if the 38.2% to 50% retracement zone and shoulder lows in the 55 to 53 area holds.

Chart 3: SPDR S&P Banks ETF (KBE) with future pattern if retracements hold

---

Disclaimer

STS is not a registered investment advisor, broker-dealer, or financial planner. All content provided by STS—including commentary, technical analysis, charts, trading strategies, and data—is offered solely for educational and informational purposes. STS does not provide investment recommendations, and none of the content should be construed as advice to buy, sell, or hold any specific security or financial product. You are solely responsible for making your own financial decisions.

Impersonal Nature of Content

The information and insights made available through STS Services are not tailored to the investment objectives or financial circumstances of any particular individual. Any mention of securities or strategies is made without regard to your specific situation, and STS makes no assessment of suitability for any user.

Past Performance and Risk Warning

Trading and investing involve significant financial risk. Past results are not indicative of future performance. The value of investments can fluctuate, and you may lose part or all of your investment. STS makes no warranties about future outcomes based on historical data. All investment decisions must be made at your own discretion. We make no guarantees regarding the accuracy, completeness, timeliness, or reliability of the information we provide. Although the content is derived from sources believed to be reliable, we do not warrant the accuracy or completeness of any information provided and are not responsible for any errors or omissions.

No Liability for Decisions

STS and its affiliates, officers, employees, contractors, and content contributors (collectively, “Representatives”) assume no responsibility for your investment actions. You agree to hold STS and its Representatives harmless for any loss or damages—whether direct, indirect, incidental, or consequential—resulting from your use of or reliance on the Services.

Due Diligence Responsibility

Users are strongly encouraged to perform independent research and consult with qualified financial, legal, and tax professionals before making any investment decisions. You bear sole responsibility for evaluating the content and its appropriateness for your particular financial goals. Use of the services is at your own risk.