Financial Stocks Mixed With Key Moves Discussed

The financial stocks continue to be under pressure over the last couple weeks. Stocks like Goldman Sachs Group, Inc. GS, JPMorgan Chase & Co. JPM and Wells Fargo & Company WFC are all sharply off their recent daily highs. Goldman Sachs has faired the best, falling to from $157.25 to its current level of $148.38. JPMorgan Chase and Wells Fargo have dropped much more sharply. JPMorgan ran into the 200 moving average August 2nd, 2010 at $41.70. It currently is forming an in spirit of bear flag pattern on the daily chart and is trading at $37.75, fractionally higher today. Wells Fargo has shown even less strength in recent days. While other financial stocks have held flat or bounced, Wells Fargo just today finally ran into some solid support. On July 27th, Wells Fargo kissed the 200 moving average on the daily chart. Since then it has fallen to $25.28, slightly lower on the day. Wells Fargo has finally come into some daily support at $25.25. The stock also has more support at $24.75. This lower level is a major support point for the stock. Note the chart below of Wells Fargo. Intra day, Goldman Sachs played a picture perfect gap fill as it fell into the closing price from yesterday, after gapping up. Note the chart below. This is a perfect example of a bullish long intra day scalp play that is taken advantage of every day by pro traders. Note the chart below. Also, while the intra day was a great bounce scalp to the long side, the daily Goldman Sachs chart is bearish and should have more downside in the coming weeks. Gareth Soloway Chief Market Strategist www.InTheMoneyStocks.com