Financial Stocks Hold The Cards
This morning, the major stock indexes are fading into the sunset once again by giving up the pre-market gains. Traders and investors are now starting to have fear that the major stock indexes can break sharply lower. There are a lot of stocks that are very oversold which tells us that a bounce could occur. It is the financial stocks that should be followed most closely this morning. If the financial stocks begin to break down then the important support levels that are in place on many leading stocks may collapse and trade lower. Therefore, as long as the financial stocks hold up the major stock indexes have a chance to bounce today.
J.P. Morgan Chase & Co.(NYSE:JPM) is the most important financial stock in the entire stock market. This financial giant is trading lower by 0.07 cents to $39.76 a share. Should JPM stock start to decline sharply lower the major stock indexes should come under heavy selling pressure. JPM stock will have short term intra-day support around the $39.50 area. Should the stock trade higher on the session there will be intra-day resistance around the $40.21 level.
Goldman Sachs Group Inc.(NYSE:GS) is considered the leading broker dealer in the entire stock market. This stock is actually trading higher this morning by $1.13 to $132.35 a share. Traders can watch for intra-day resistance around the $133.75 area. Should the stocks decline during the session the stock will have intra-day support around the $131.00 area.
Wells Fargo & Co.(NYSE:WFC), Bank of America Corp.(NYSE:BAC), and Morgan Stanley(NYSE:MS) are all trading flat on the session. This group of stocks is probably the most important group of stocks to follow today. If these stocks decline it could spell trouble for the major stock indexes once again.