Purely from a technical perspective, my pattern work in JP Morgan (JPM) has been arguing that the late-June upmove from 39.20 to 41.72 represented the end of a major correction off of the Feb 16 high at 48.36 and the start of a powerful intermediate-term recovery period.
Today's breakdown to an intraday low at 39.37 puts that scenario in jeopardy. That said, however, as long as 39.20 remains intact, current weakness represents a test of the prior low, just below which is where my intraday stops are placed.
To get any traction on the upside, JPM needs to claw its way back above 39.90-40.00 on a sustained basis, which also will begin to morph the developing pattern into a double-bottom low in the 39.20/40 area.
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