The chart below is of the Bank Sector Index and it is comprised of the top 24 money centre banks (e.g. JPM, Citi...) in the U.S. Over the past few days, it has broken below major support near the 75 level. If it does not recover within the next few days, the financial sector will be in very grave condition. With the major bond insurers being warned today, it is unlikely that this bank index will be moving north anytime soon.

We will see if this latest hit to the bank index ignites a rally in precious metals as it "should".

Regards - VHF

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