Sunday, 17 April 2011

Weekend updates - Dow Jones & Banks

The Dow Jones Index showed strength on Friday and managed to break Ichimoku Cloud's Tenkan line with volume as it bounced off the 50day MA as it looks to resume its current uptrend.



As for the banks, they have yet to move in tandem with the index. We should be able to see the Dow breaking new highs when the bank stocks wake up from their slumber. Its hard to see the economy improving and the banks not being part of it. Let's look at the overall barometer of banks via the Direxion Financial bull ETF. This ETF tracks bank stocks. FAS is now at crucial support. Will it hold? Banks are on my watchlist now. Currently stalking BAC and FAS and will be looking to make my purchase if they manage to hold their respective support area.

FAS - (Click chart to enlarge)



JP Morgan - (Click on chart to enlarge)



BAC - (Click on chart to enlarge)





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