Large Financial Stocks Send Mixed Signals
The large financial stocks have been some of the weaker stocks over the past three months. This morning, Citigroup Inc.(NYSE:C) reported earnings that were better than expected. Citigroup stock is trading higher by 0.81 cents to $39.82 a share. Yesterday, J.P. Morgan Chase & Co.(NYSE:JPM) reported earning that were well received by investors in the early part of the trading day. The daily charts of all the financial stocks still remain very poor. All of the 'too big to fail' stocks still remain below their daily chart 50 and 200 moving averages which puts this sector in a weak technical position. Even this morning, JPM and Citigroup have faded sharply from the opening bell. This is not a good sign of strength for the markets.
Some other leading financial stocks that are fading from the opening bell include Goldman Sachs Group Inc.(NYSE:GS), Wells Fargo & Co.(NYSE:WFC), and Bank of America Corp.(NYSE:BAC). Short term traders can watch for intra-day support on JPM around the $39.60 level. It is prudent to keep a close eye on the financial stocks as these stocks have been leading the markets for months now.