Terranova said today's action in that sector clearly shows there's a divide between the investment banking model and consumer-oriented banks like the regionals, Citigroup (C) and Bank of America (BAC).

If you’re looking for a trade, I’d look at Wells Fargo (WFC) and Bank of America Corp. (BAC) from the short-side, says Guy Adami.

That means Goldman (GS), Morgan (MS) and other banks that have strong trading units are still poised to turn profits but the big money center banks such as Bank of America Corp. (BAC) are in a different class and the profit potential doesn't look nearly as attractive. - Joe Terranova

That means Goldman (GS), Morgan (MS) and other banks that have strong trading units are still poised to turn profits but the big money center banks such as Bank of America Corp. (BAC) are in a different class and the profit potential doesn't look nearly as attractive. - Joe Terranova

If you’re looking for a trade, I’d look at Wells Fargo (WFC) and Bank of America Corp. (BAC) from the short-side, says Guy Adami.

The technicals in the Financial Select Sector SPDR ETF (XLF) and the KBW Bank Index (BKX) look terrible, adds Tim Seymour. We broke some fairly important levels and that’s an important and bearish technical signal.

The technicals in the Financial Select Sector SPDR ETF (XLF) and the KBW Bank Index (BKX) look terrible, adds Tim Seymour. We broke some fairly important levels and that’s an important and bearish technical signal.