SPY broke the neckline and formed a Head and Shoulders yesterday with increase in trading volume. If SPY cannot get above this neckline at about $105.6, this ETF will go down to $89, which is also close to the 61.8% Fibonacci Retracement Level.
JP Morgan (JPM) bounced back from 50D MA resistance and also 23.6% Fibonacci Retracement Resistance at $40.3 and punched through the neckline at $37.70 yesterday. Need to monitor whether this selling momentum is str0ng enough to confirm the Double Tops. I believe other traders are watching this level closely and prepared to short sell when this double tops is confirmed.
Citigroup has formed a wedge and currently very close to the wedge support near the 61.8% Fibonacci Retracement Level. Currently Citigroup just broke below all the three moving averages (20D, 50D, 200D) which is a bearish sign. Watch closely for the breakout. Base on the chart pattern, breakdown from this wedge pattern may send the stock to $1.00 but personally I think is unlikely to reach that level. I feel that the downside risk is limited and I am waiting Citigroup to go lower after breakout for long term investment.
