This a Daily chart for JPM, current price has moved above all MA's; time will time if this holds. We could see a bow tie effect in the coming days. Due to the extremely light volume of the market pass couple of trading sessions and weeks for 2008, we saw a great big move to the upside. Will this continue in the New Year? Well, as an Option Trader, we play the hand that is dealt; we do not believe in picking a direction of the Markets. The resistance level appears to be around the $34 then $36 per share level; as the 50-Day MA is at this price level. Look at Dec 7-8; when the 50-Day MA held the price and then JPM moved lower. The RSI and the Stoch are becoming oversold.
I would look for an entry for your risk level.
The first week of Jan will tell us how the market should react in the coming months in 2009. Play them like you see them.
