Earnings Showdown:

The financials are the names that kick off the earnings season, and they have obviously been put through the wringer as of late. Some names were held up better than others, but the majority of the group was not immune from the situation with the regional banks. One name that was weak before the “crisis” is the chart below of Goldman Sachs. Notice it recorded a very powerful run from the rough 300 to 390 area creating a bull flag but it broke BELOW the pattern and we know from FALSE moves come fast ones in the opposite direction. It started making lower highs afterward but found support several times at the 340 level, which began a bearish descending triangle that was taken out to the downside one month ago. It has started to trend higher ever so slightly and volume has been anemic as it approaches a possible retest of the breakdown. That may come via the EARNINGS¬†reaction next week. Be patient. The overall market feels fragile and in that environment best to stay small or on the sidelines waiting for the “fat pitch”.

This article requires a Chartsmarter membership. Please click here to join.