I think Q1 earnings reporting season could provide the market with a much more bullish backdrop for equity traders … one stock that reports this week is JPM, which leads the bank reporting season off when it reports this Friday before the open.
JPM’s chart suggests that the most likely short-term path after the report is to the upside …
JPM – 195 Minute Chart
The trend strength histogram has pulled back into the Chop Zone and looks like it could be signaling an upcoming expansion phase. If that is what is going to happen, then the break higher by the relative strength indicator suggests to me that the stock wants to go higher if the earnings report is anyway half decent. I am long call options that expire in May.
Cheers … Leaf_West