WE have on the LEFT a JPmorgan chart on the right GS. Why are these examples of a topping market? JPM has been strong through out the whole downturn and Goldman has led the train like a valiant leader.
My hypothesis: Both of these stocks have hit solid resistance, (JPM 48$, GS$195ish) GS has pulled back into its vertical positive sloping channel deviating the center line, which is has not yet in this rally. JP on the other hand has touched 48$ nearly 5 times, what happened the last 3 times this happened? JP sold of to the lower support of the negative sloping channel. Volume on both GS and JP has confirmed more shares trading hands as the flat trading volume for the past few months has been punctured. The support turned resistance around 195 in Goldman has been defended in the past with massive volume, we have not seen massive volume yet.
I think perhaps the slow unwinding of of shares at the top into the last few naive punch drunk home gamers could be the smart money trade. We will see the volume spike when the lower support channel is broken.
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