Too Big To Fail Keeps Markets Alive So Far
As we all know by now, the large financial institutions have lead the markets lower over the past three months. This morning, it is the large financial stocks that are trading higher on the session keeping the markets alive. When the financial stocks show intra-day strength it is very difficult to see the major stock indexes decline. Now on the flip side, if the large financial stocks begin to sell off and decline then we should all be aware that the major stock indexes could continue to come under selling pressure.
This morning, leading financial giant J.P. Morgan Chase & Co.(NYSE:JPM) is trading higher by 0.35 cents to $41.02 a share. Short term traders should watch for intra-day resistance around the $41.20 area. This stock is the most important financial stock in the entire stock market.
Citigroup Inc.(NYSE:C) is trading higher by 0.29 cents to $38.55 a share. This financial giant will have intra-day resistance around the $39.00 level. Citigroup stock is still trading below all of its major daily chart moving averages which puts the stock in a weak technical position.
Goldman Sachs Group Inc.(NYSE:GS) is another leading financial giant that has rallied higher after reporting earnings on July 19, 2011. This stock will have intra-day resistance around the $137.00 level. Should GS trade higher throughout the session the next resistance level will be around the $138.00 area.
Other giant financial stocks that are trading higher include Morgan Stanley(NYSE:MS), and Bank of America Corp.(NYSE:BAC). It is important to remember that if the financial stocks begin to trade lower as the major stock indexes will come under pressure. The "too big to fail" stocks are carrying a lot of weight these days.