Major banks could emerge as stock market leaders again next year, if they can first establish new 12-month highs, according to a leading Wall Street technician. But higher interest rates and the prospects of a less favorable economy could stand in the way.

The top banks show signs of longer-range positive momentum, said Gail M. Dudack, chief equity strategist at Warburg Dillon Read in New York, particularly when viewed against their recent lows.

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