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Banking Index stalling

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The Banking Index (BIX.X) appears to be stalling at it's 2-month downtrend line. This could be due to rumors that the Fed is only going to cut rates by .25 basis points.

Banking Index (BIX.X) Chart - 60-minute interval

The 200-day moving average is also helping to push prices down, as well as a Broker\Dealer Index (|XBD.X0) that is down 2.92%. Prices could reverse from these levels, and if they do reverse, look for support around the 50-period moving average and uptrend line at the 642 level. A stock in this group that is also setting up for a good short\put is J.P. Morgan (NYSE:JPM)

J.P. Morgan (JPM) Chart - 60-minute interval

JPM looks similar as it is turning down off of its 50% retracement bracket, and 200-day moving average. If it can breakthrough $49.57 it has nice downside potential. Either the 50% or 38% retracement brackets could be used as possible stops.

Jeffrey Canavan
Assistant Analystt

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