One highly watched stock is JPM, but traders and investors should be paying more attention to it at current levels. Since being in a downtrend from its March highs, the stock is now poised to break (or find support) at its 50day moving average.
If you take a look back into the last time the stock broke below its 50day moving average it coincided with the broad market falling below its 50day moving average and beginning a long descent. So yes JPM is important to watch as a leader in the market. If JPM breaks below its 50day on a pick up in volume, watch for it to fall towards $40 as both nervous longs and shorts become more aggressive. Also watch for the broad market to start feeling some pain at the same time.
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