Just Watch This Stock
The most important stock in the market is J.P. Morgan Chase & Co (NYSE:JPM). This stock has led the major stock indexes higher and lower over the past five years. Recently, the stock has been bombarded with negative news regarding its highly publicized London Whale trading loss. When JPM stock declines it is often viewed as a stock market barometer. Traders should note that JPM stock just traded into a mountain of chart resistance around the $51.00 level. The daily chart of JPM is signaling some support around the $47.00 level. Should that level fail to hold as support then it could spell real trouble for the stock market and the market leading financial stocks. Short term traders should watch for intra-day support around the $48.40 level.
Some other leading financial stocks that traders should follow closely include Deutsche Bank AG (NYSE:DB), Goldman Sachs Group Inc (NYSE:GS), BlackRock Inc (NYSE:BLK), and Bank of America Corporation (NYSE:BAC). This industry group has been one of the top sectors since October 4, 2011. If this sector starts to rollover it should indicate that a true stock market correction is underway. Until that time, just follow the financial stocks.