I see two takeaways from this chart. First and foremost, banks are in favor as we head into earnings season. Money is rotating into financials in general, and into banks more specifically. Second, I'd say that Wall Street is perhaps favoring Bank of America (BAC). The two blue-dotted vertical lines mark the big relative high from May and the relative high from last week. I've drawn lines for each of the banks from their relative
position (vs. the S&P 500) in May to last week. I'd say the clear laggard is Citigroup (C). As the banks release their results this week, it'll be very interesting to see if Wall Street got it right.
