BAC, BHC, C, JPM updates 09/19

BAC: Most likely -and finally- completed intermediate-ii of major-5. Should now either follow a standard impulse pattern or an ED. Something tells me it will be an ED… but maybe that’s because I prefer to always be on the cautious side of things when it comes to the markets. Also, because the upside targets are rather high given where the market currently is AND Diagonals are very common in 5th waves. The technical indicators are all pointing back up and the A.I. switched to a buy, while the money flow index dropped below 20. The latter means, it pretty much can only go up from here: money flowing back in a stock is always a good thing. Liquidity drives the market!

BAC

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BHC: Formerly know as VRX (Valeant) . Price action off the April 2017 low remains overlapping in the big picture and should thus be counted as a set of a,b,c waves. As long as price remains in the black up trend channel, the larger trend remains up. Either wave-b of C has complete or all of C completed in June. Bit hard to tell due to the overlapping advance. Normally at least the C=A (100%) Fib-extension is reached, which suggests we should see one more leg higher (black arrow, with c=a), BUT watch that trendline for clues as to tell is that rally is not going to happen. A break below $20.50 at this stage will be the tell

BHC.png

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C: Picture perfect impulses so far. This one we can try to micro-count and target. Ideally minute-iii to $74.50, then –iv to $72.60, and –v to $75.50, which is where v = 2.00x i, from ii, and also where minor-3 = 1.382x 1, from 2, and where the 100% extension of intermediate-i, from ii, resides. In other words: a perfect alignment for a wave-3 of iii extension. Minor-4 should then fall back to $73.70 (100% extension of 1) and minor-5 will then ideally take price to the 200% extension at $78.50, which aligns well with the 1.382x Fib-extension if i: a classic wave-iii target.

C daily

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JPM: Same setup as the other banks in that wave-ii of major-5 is complete. Also for JPM I expect an ending diagonal.  A break above $118.30 will be (very Bullish) as that’s a new ATH and Bull markets make new ATHs, not bear markets! It could go as high as $145 for all of major-5, but for now I’ll focus on $128-$129 as that’s where major-5=1 and that will complete Primary-III. Wave-IV should then bring price back down to mid-80s… Not something one would like to sit through IMHO…

JPM daily.png

JPM monthly