Dimon’s Hurricane:

Jamie Dimon’s prediction of an economic hurricane almost one year ago was stellar. The group was shaken to the core following the SIVB crisis. But the shakeout also gives investors vital clues as to which names weathered the storm best. Everyone basically thrones JPM as a best-in-breed name and the chart below shows it could be setting up a cup with handle pattern. Looking at the distance from their most recent 52-week highs confirms this thought process as JPM is 6% off its own, compared to traditional money center peers C WFC and BAC which are 14, 19, and 27% from their own annual peaks. On a YTD basis, both C and JPM are in the green while WFC and BAC are down 5 and 14% respectively. The handle on JPM’s cup is already getting a bit deep but it certainly needs to remain above its 50-day SMA. If it does not a gap fill toward 129 from the 4/13 session seems logical. BAC and C both filled in that gap Wednesday. Dimon recently stated the banking crisis is not over. Another leg lower or will the group stand up? Watch JPM intently for clues.

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