One of the most encouraging things you want to see in the equities market is when a stock rallies in the face of bad news.
That usually tells us that the bad news is priced into the stock's price. Similarly, one of the most discouraging things to emerge in the market is when a stock, or a group, reacts poorly to good news; this tends to indicate that the good news is already priced into the stock, and there aren't any buyers left to take the stock higher.
This is exactly what we've seen in several key bank stocks recently, like JPMorgan, Citigroup and Goldman Sachs, which gives me pause about the group as a whole.
All three banks reported strong earnings, but in each case their initial rallies reversed, and the stocks fell considerably. Even Bank of America reversed its gains on Monday, even though it didn't fall quite as far as its aforementioned peers.