BTIG Chief Market Technician, Jonathan Krinsky Quoted by CNBC

Banking sector crisis putting downward pressure in other industries, says BTIG. First the banks started to break in February, then it was the real estate investment trusts (which “have now accelerated lower particularly in the office space”), and now it’s the turn of insurance, railroad and airline stocks, BTIG chief market technician Jonathan Krinsky wrote in a note to clients dated Thursday.

Krinsky highlighted four insurance stocks that are sitting at or near 52-week lows (Metlife, Chubb, AIG, Prudential) and said the KBW Nasdaq Insurance Index is down about 16% from its February highs. Meanwhile, for adherents of the Dow Theory, Krinsky noted that railroad stocks were “less than 1% away from their October lows” while airline stocks “are threatening a multi-month breakdown.” Technology is holding up the market, so “if tech fails, as we expect, then [the S&P 500] can quickly unravel lower.”