JPM Earnings Beat Not Enough to Boost Market

Scott Redler  |

The pressure is building on Research in Motion (RIMM), which is still working to restore full service to its customers' phones. Outages have spread to most of North America, where users are having issues accessing email, using Internet browsers and using BBM. The company has blamed the issue on a system switchover that triggered a data back log, but customers don't want to hear excuses. The problems come at an inopportune time, as the iPhone 4S is set to launch this Friday. The stock is off 3.5% this morning.

The market has been extremely impressive over the last 7-8 days, but volume has been light. However, traders don't profit based on volume, they profit based on price action, and for now it seems composure has changed in the bulls' favor. Yesterday the S&P knocked on the door of heavy resistance at 1220 and it was a good spot to take some profits on swing long positions, and test some cash flow shorts. So far there has been no significant retracements, only rest, so it will be important to see what levels hold. Shallow support stand at 1187-1195, while the 50-day moving average should hold at 1173-1177.

*DISCLOSURES: Scott Redler is short SPY, MOO, OIH, LVS.

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