12/08/2009

XLF came close to touching the $14.20 level that I talked about yesterday. XLF was relatively stronger than the overall markets due to the intraday strength of JPM. Somewhat of an ambiguous close. JPM is trading in a bearish pattern with a nearer term bullish pattern. On the 10-minute, JPM must break the blue trendline for another leg down. Resistance on JPM are at the 200-MA, $41.40 and $41.80 levels. XLF will follow JPM.

I'm thinking we're going higher tomorrow. If we do, I see JPM going to the 200MA and XLF touching the bottom of the triangle before another fall.

XLF 60-min and JPM 10-min.