In our last report on December 5th, 2023, we highlighted JP Morgan (JPM), which at the time exhibited notable relative strength compared to the broader U.S. financial sector, which was struggling. At that point, JPM was among the first major U.S. financials to enter the Favored Green Zone of the SIA S&P 100 Report. The stock broke through the $160 resistance level, and this rise in relative strength foreshadowed its ascent towards a target of $195.95, where both vertical and horizontal counts aligned. Through 2024, JPM has continued to climb, moving up nine positions in the relative strength matrix in the past month alone. Currently, the stock has surged 45.15% over the past nine months versus 26.09% for the S&P 100 index ETF (OEF), maintaining its position in the Green Zone throughout 2024. The recent performance indicates a solid and consistent upward trajectory, showcasing JPM's robust relative strength amidst a volatile market environment. Turning next to the candlestick chart and a daily microscope, we observe a positive trend line for 2024 that converges on $198 and the whole number $200, which will act as a supportive level for JPM shares. Support below $200 is visible at $189, with the next resistance level at $216. Despite recent market turmoil, JPM remained stable throughout the month and recently rebounded impressively during the latest bout of market turmoil, up +1.46% for the week compared to the S&P 100 ETF's (OEF) -3.93%. Also noteworthy, though likely a short-term effect, is the declining volume in the late week as the market digests the latest selloff triggered by concerns over Japanese carry-trade effects. JP Morgan currently holds a SMAX score of 8 out of 10, reflecting strong short-term performance compared to various asset classes, even amidst global market volatility. The stock is trading just above the $200 level at $207.94, with a current yield of 2.21%.
The Point and Figure (P&F) chart attached, with its matrix position overlay tool engaged, shows an impressive long-term growth pattern characterized by several pulses ahead (Green) followed by consolidation periods (Red). The current pulse has produced substantial gains for shareholders and reflects investor optimism for JP Morgan's future prospects, likely influenced by declining interest rates, though the full rationale may not materialize until later. The P&F chart scaled at 2%, indicates that JPM's resistance levels are now positioned at $234.81 and further at $269.72, with support at $200, followed by $177.96 and $158.02. Currently, the stock is trading in the middle of its range, making entry challenging. However, any pullback to the $200-$180 range would improve the risk/reward parameters significantly. Broader market strength could potentially drive this relative outperformer to even higher levels, with only a 3-4 box reversal, similar to previous pulses. JP Morgan currently holds a SMAX score of 8 out of 10, reflecting strong short-term performance compared to other various asset classes, even amidst global market volatility.
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