JP Morgan has fired the starting gun of earnings with a bang, with other financials taking encouragement. But right now, any of these recent gap-ups will need to consolidate in order to form a preferred trade setup.
Keep an eye on them, but don’t rush in.
As I go through my regular process, I see a market with more upside potential, but apart from the financials, other stocks are making rather heavy weather of things.
So, my guidance for the past two weeks of further short-term upside continues, with a number of our bullish setups having performed well, but there is a “but … ” in the equation.
Last week’s nuggets were decent, and I see more short term upside likely this week.
The Main Indices:
The SPDR Dow Jones Industrial Average ETF Trust (DIA) was last week’s best index performer, with the others sideways. Though the iShares Russell 2000 ETF (IWM) did have a positive Monday before returning to a rather fragile look despite holding the Monday gains.