On days like this, where the stock markets are down sharply at the start of the day there is only one place to look for guidance, it is the financial stocks. As long as the financial stocks remain weak traders must expect lower prices on the major stock indexes. If and when the financial stocks bounce that is when the major stock indexes will catch a small bid and trade higher.
J.P. Morgan Chase & Co (NYSE:JPM) is the most important stock in the United States and possibly the world. This stock has lead the stock markets higher and lower throughout 2011. Traders should always watch and monitor JPM stock at all times. This morning, JPM stock is trading lower by 0.58 cents to $30.81 a share. This financial giant will have some minor intra-day support around the $30.43 area. Should that near term support level breakdown the next intra-day support areas will be around the $30.00 and $29.50 levels.
Other leading financial stocks that traders should follow are Goldman Sachs Group Inc (NYSE:GS), Morgan Stanley (NYSE:MS), and Bank of America Corp (NYSE:BAC). All of these leading financial stocks look horrible on the daily chart at this time. This is how the financial stocks talk to us.