Lately, with the debt ceiling negotiations usurping everyone's thought processes, excitement about last week's powerful upmove in the financials and banks has faded into the background. Purely from a technical perspective, however, JP Morgan (JPM) is acting very well as it continues to carve out an intermediate term bottom formation, presumably ahead of a thrust that projects to 45.00-46.00.

Since its high at 42.55 exactly one week ago today, JPM has relinquished half of its gains into the 40.60/50 support zone, where it is finding support that should provide a secondary basing area from which renewed strength should emerge in the upcoming hours -- headline and market risk notwithstanding.

All else being equal, JPM is poised to begin a new upleg that will revisit the July high at 42.55, which if hurdled, will trigger upside targets into the 45.00-46.00 target zone.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.