JPM Follow Up

When JPM broke out of the range it had been trading in, I suspected it may be a false breakout-these are profitable trades as they reverse.

There were negative divergences on the breakout, yet it went higher. The last few days, 3C has failed to confirm the higher prices.

Today JPM is down on increasing volume. The highest probability trade will be a break of support around $41.50 or so, at that point it could quickly move to the $35.50 area-next major support. If/when the first break of support occurs, you may want to look at this trade as it could and probably would fall fast. I think you have some time before then, but the rate of decline today and the rising volume is dangerous for the longs in JPM.