BAC, JPM updates 10/16

BAC: Quite the mess since early July, with an almost full retrace of the rally until the early August high. Question is if that was wave-i of 5 or all of 5 (failed 5th). Price cannot drop below the early July high from current levels as that would mean the failed 5th is operable; and we’ll see a relapse to the 2015 lows! Price appears to be carving out a slightly up-sloping trend channel, which could mean this is going to be a long drawn-out ending diagonal. Hard to tell, take it day by day.



JPM: Has two options. Either it put in a wave-ii low and is now working on the beginning of wave-iii, or it’s doing a 4th wave to around the 100% Fib-extension at $110.10ish, and then a 5th wave down to mid-103s (200% Fib-extension) to complete intermediate-a. From there a larger bounce (wave-b) should happen. Contrary to BAC, it did make a ATH in August after a clean 5-waves up and thus can be counted as having completed major-5 of Primary III. See the monthly chart below for the bigger picture count.

JPM daily

If the bigger picture count is correct, and there’s a lot going for it especially due to all the negative divergences on all the technical indicators, then JPM is working on the 5-waves down for wave-a. We should then see a move back down to the $77 level for Primary IV.

JPM monthly