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Wednesday, May 24, 2017 9:47:16 AM
Minding Three Gaps for Three Big Banks
By Arthur Hill | May 24, 2017
Banking stocks bounced on Tuesday as the 20+ YR T-Bond ETF (TLT) fell and the 10-yr T-Yield ($TNX) moved higher. These bounces reinforce the positive correlation with TLT and the negative correlation with $TNX. The chart below shows three big banks in long-term uptrends and six month stalls. Technically, Bank of America, JP MorganChase and Morgan Stanley are in long-term uptrends because they are above their rising 200-day EMAs and they hit new highs in March.
Despite uptrends, these three have traded flat since mid December and I am sure plenty of chartists see head-and-shoulders patterns taking shape with the green zones marking neckline support. I am more inclined to see a downtrends since March (red trendlines) and I consider these corrections within a bigger uptrend. The big question is: when, if ever, will this correction end? The red zones mark the gaps and the mid May highs. A close above these levels would fill the gaps and break the first resistance level. This would reflect an increase in buying pressure and point to an end to the corrections.
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Thanks for tuning in and have a great day!
--Arthur Hill CMT
http://stockcharts.com/articles/dont_ignore_this_chart/2017/05/minding-three-gaps-for-three-big-banks-jpm-ms-bac.html
• DiscoverGold
By Arthur Hill | May 24, 2017
Banking stocks bounced on Tuesday as the 20+ YR T-Bond ETF (TLT) fell and the 10-yr T-Yield ($TNX) moved higher. These bounces reinforce the positive correlation with TLT and the negative correlation with $TNX. The chart below shows three big banks in long-term uptrends and six month stalls. Technically, Bank of America, JP MorganChase and Morgan Stanley are in long-term uptrends because they are above their rising 200-day EMAs and they hit new highs in March.
Despite uptrends, these three have traded flat since mid December and I am sure plenty of chartists see head-and-shoulders patterns taking shape with the green zones marking neckline support. I am more inclined to see a downtrends since March (red trendlines) and I consider these corrections within a bigger uptrend. The big question is: when, if ever, will this correction end? The red zones mark the gaps and the mid May highs. A close above these levels would fill the gaps and break the first resistance level. This would reflect an increase in buying pressure and point to an end to the corrections.
****************************************
Thanks for tuning in and have a great day!
--Arthur Hill CMT
http://stockcharts.com/articles/dont_ignore_this_chart/2017/05/minding-three-gaps-for-three-big-banks-jpm-ms-bac.html
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Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
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