Courtesy of Chris Kimble
Is a major bank in the states about to send the broad market a bullish message? If it breaks out at (2), it will!
JP Morgan struggled to break above resistance for nearly 18-months, as it keep kissing the underside of line (1). Once it succeeded in breaking out, it rallied nearly 20% in 4-months.
Weakness earlier this year saw it break back below line (1), as selling pressure drove it down more than the broad markets.
The rally since the March lows has it testing the underside of line (1) as well as the underside of a line tied to the 2009 and 2016 lows at (2).
JPM and the banking index have reflected relative weakness compared to the broad market since January of 2018 (nearly 30-months).
What JPM does at (2), will most likely send an important message to the banking sector and the broad market as well.
Keep a close eye where JPM closes out the month!
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