By Gareth Soloway on April 5th, 2010 11:40am Eastern Time
JPMorgan Chase & Co. (NYSE:JPM) has been a monster and leader among stocks over the last two months. Since the February 5th, 2010 low was put in, JPM has taken this market higher. The January high was $45.19. As the stock fell into the February 5th pivot, this high became extremely significant for technical investors and traders.
The stock has charged higher, all the way back to that $45.19 level. In the last week, it has crossed it many times intra day but never quite having enough power to close above. This level remains a hardened resistance, though, the continued hammering does weaken it slightly. This is the line in the sand, the master level on a closing basis for the stock.
The markets are trading higher today. Not a very big surprise to anyone as it seems to have that "invisible" hand continues to keep it up with 11,000 on the DOW looming large. Extreme light volume continues.
The leaders today are commodities and commodity stocks. Regardless of the PowerShares DB US Dollar Index Bullish (NYSE:UUP) trading higher, commodities are still strong on last Friday's non farm payrolls data. In addition, globally, growth seems as good as ever. This is creating a demand issue for commodities and driving the prices higher. It will be interesting to see what price oil can go to, before it starts to take its toll on the consumer. Oil is starting to close in on $90 per bbl.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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