Tuesday, August 23, 2011

Market Watch: JPM


In the stock market all you can ask for is clarity and you don't get much more clarity than you're looking at right now on the chart of J.P. Morgan JPM. Look at the action for the month of August and how J.P. Morgan closed underneath $34 last night. When I look at that I see a line in the sand the JP Morgan has definitely sunk beneath.

Yesterday selling volume surged as you can see from the volume chart. Also the stochastic is accelerating down as evidenced by the red line separating from the blue line.

Right now the only indicator that matters for JP Morgan is the price.The longer J.P. Morgan stays beneath $34 a share higher the probability that it crashes. So, now I think we just dance with J.P. Morgan around the $34 zone.

Today we will look for a short entry point for J.P. Morgan. Hopefully we can put a stop at yesterdays high of $35.18.

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