Financial Stocks Play Follow The Leader
Since early May, it has been the large financial stocks that have lead the stock market declines. Many leading financial stocks have struggled throughout most of 2011. All traders and investors must keep a close eye on the leading financial stocks as these stocks are leading the major stock indexes at this time. In this case, the financial stocks have lead the market indexes lower. The financial stocks account for roughly 14.0 percent of the S&P 500 Index.
J.P. Morgan Chase and Co.(NYSE:JPM) is by far the most important financial company that traders and investors should follow. This stock remains below all of its daily chart 50, and 200 moving averages. When this type of formation forms it tells us that the stock is in a downtrend, and in a weak technical position on the charts. This morning, JPM is trading lower by 0.25 cents to $40.80 a share. Traders can look for some minor intra-day support around the $40.65 and $40.00 levels.
Other leading financial stocks that continue to struggle include Bank of America Corp.(NYSE:BAC), Wells Fargo & Co.(NYSE:WFC), and Citigroup Inc.(NYSE:C). These stocks continue to remain weak on the daily charts. This tells us that the entire financial sector is trading together. It is still very important for traders to follow the leading stock in the sector, which is J.P. Morgan Chase & Co., for overall direction in the financial stocks.