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This Stock's A Barometer, So Watch It!

Published 03/20/2013, 01:22 PM
Updated 07/09/2023, 06:31 AM
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The most important stock in the market, today, is J.P. Morgan Chase & Co. (JPM), which has led the major indices both higher and lower over the past five years. Recently, JPM has been bombarded with negative news regarding its highly publicized 'London Whale' loss. When JPM declines, it's often viewed as an overall market barometer. Market watchers should note that JPM just traded into a mountain of chart resistance around the $51 level. JPM's daily chart is signaling some support around $47. If that level fails to hold as support, it could spell real trouble for the stock market in general and financial stocks in particular. Short-term traders should watch for intra-day support around the $48.40 level.

Others To Watch
A few other financials traders should follow closely include Deutsche Bank AG. (DB), Goldman Sachs Group Inc. (GS), BlackRock Inc. (BLK) and Bank of America Corporation (BAC). This industry group has been one of the top sectors since October 4, 2011. If this sector starts to rollover it should indicate that a true stock market correction is underway. Until that time, just follow the financial stocks.
JP Morgan Chase & Co.

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