Too Big To Fail Leads Markets Higher
The large major banks are catching a bid higher this morning. This leading industry group has been very weak recently on the daily charts. Therefore, when the large major financial banks rally higher it is very difficult to see the major stock indexes come under pressure.
J.P. Morgan Chase & Co.(NYSE:JPM) is the leading financial stock in the entire stock market. This stock is trading higher by 0.46 cents to $39.95 a share. On June 24, 2011 JPM stock made a new low for 2011. The stock remains below all of its major daily chart moving averages, which puts the stock in a weak technical position. The stock will have intra-day resistance around the $40.10 and $40.50 levels.
Wells Fargo & Co.(NYSE:WFC) is one of the leading financial stocks that has showed some relative strength when compared to the rest of the major bank stocks. WFC made a low on the daily chart on June 8, 2011 at $25.26 a share. This morning WFC stock is trading higher by 0.26 cents to $27.51 a share. WFC stock should face intra-day resistance around the $27.60 and $27.85 levels.
Other leading financial stocks that are trading higher this morning include Bank of America Corp.(NYSE:BAC), Citigroup Inc.(NYSE:C), and Morgan Stanley(NYSE:MS). As long as the large financial stocks hold up, it is difficult to see the major stock indexes decline lower. Should the leading financial stocks decline during the trading session the major stock indexes could fall like a rock. The major market indexes are still very fragile at this time.