The J.P. Morgan Dilemma
First of all, here is a short-term chart of J.P. Morgan and the S&P500. They move together:
Here is a longer-term look, showing the rolling 52-week correlation:
So what's the dilemma?
Well, $JPM broke below last year's lows, essentially confirming a double top. With prices below that former support as well as a downward sloping 200 day moving average, one thing we know for sure is that this is not an uptrend:
This chart screams retest of the breakdown doesn't it?
Here is what it would likely look like if this is indeed just a retest of that breakdown last month:
Is that what this is? Or is $JPM going to work itself off through time instead, and stocks continue higher? Something like this:
I still think this is a 50 & 57 market. We're watching closely and executing accordingly.
Let me know what you think
JC