Banks Weak On Goldman, BofA Buy Level Looms
The markets opened slightly higher today after Tim Geithner defended the U.S. credit rating. He expressed his belief that there is "no risk the U.S. would lose its AAA credit rating". This helped weaken the Dollar and lift the futures for a positive open. After the SPDR S&P 500 ETF (NYSE:SPY) opened at $130.76 and moved to a high of $131.07, it faded and is currently trading at $130.63, barely positive. Volume is much lighter today after the panic of the credit outlook downgrade by Standard and Poor's seems a distant memory and the Passover holiday is now in full swing. In addition, Easter is coming this weekend and with many kids off from school, some traders are taking it lighter this week.
Goldman Sachs Group, Inc. (NYSE:GS) reported earnings and revenue that beat Wall Streets view but after opening higher, the stock quickly went negative. This action is bearish in the short term for financial firms. Bank of America Corporation (NYSE:BAC) is taking another hit today but is quickly approaching a possible buy level at gap fill. This level is at $11.95 and coincides with a major gap fill spanning back to December 8th, 2010. This will be a short term support level and should give the stock a few days bounce. Bank of America reported earnings last week that were not up to par as worries about mortgage losses from real estate continue to weigh.
Even with all the negative issues surrounding the banks and financial firms, JPMorgan Chase & Co. (NYSE:JPM) is mustering a small gain on the day, trading at $44.08, +0.12 (+0.27%). The stock came into solid support at $43.50 yesterday. This level should work as short term support as well.