The Dow Jones U.S. Banks Index ($DJUSBK) soared on Wednesday after JP Morgan Chase (JPM) delivered better than expected quarterly earnings results. The strength in JPM sent the DJUSBK to the doorstep of a significant price breakout above 300. However, Bank of America (BAC), PNC Bank (PNC) and Wells Fargo (WFC) all had disappointments with their quarterly results (either light revenues or an earnings miss) before today's opening bell and it appeared we'd see another clear failure in banks today. Instead, the group shook off the bad news and continued pushing higher, leading the financial sector to outsized gains. Banks are literally sitting on the brink of an important breakout at 300. Check this out:
The price resistance is from 290-300 and the declining 20 week EMA resides at 297 so this is clearly an area designed for battle. Let's watch to see how Friday unfolds.
About the author:Tom Bowley is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market.