Is Downtown Josh Brown Whistling Past the Graveyard?

“Downtown” Josh Brown named JPM his final trade today for the half-time fast money show.  Is he correct in his expectation that JPM is a screaming buy here?  Only time will tell, but there is a lot of overhead supply facing the market and JPM here after the damage done by the market in October.

JPM – 65-Minute Chart #1

If my read of the overall market corrective pattern is correct (i.e., ABC correction), then JPM is likely to find resistance in the SLOT and pull-back one more time.  That pull-back may make a higher low which will be bullish or it could follow the market down and make a lower leg (i.e., a final C-wave move).

There are lots of buyers of JPM during the market weakness that may be willing to sell their shares if they can get back to break-even.

JPM – 65-Minute Chart #2

The whole run-up in JPM from this past summer has also produced a lot of stranded traders down here at the current levels … the Point of Control that needs to be taken out before I would consider JPM bullish would be that $113.50 – $115.50 zone vs the $108.00 current price.

Cheers … Leaf_West

Overhead Supply / Resistance Areas …

Tonight’s AAPL earnings report is pretty key for the market … if the outlook is disappointing, then all bets are off about what could happen in the market the next several days.  I still think that the market is set-up to bounce higher into the SLOT resistance zones and therefore I want to do my work and be prepared for that next move into the final resistance levels.  Here are some looks at the volume profiles for the two key futures contracts that I trade. Continue reading