US Banks Performance
Looking at the monthly chart for JPM, we can view the 2008 crash from a technical angle as part of a larger 9 years, 3 waves correction which started since 2000, the dotcome bubble, and ended at the 2009 low. Up from there, the stock started rallying higher in an impulsive 5 waves structure making new all time highs along the way.
Based on Elliott Wave Theory, JPM is trading within the wave ((II)) which is considered to be the strongest leg in the entire cycle and therefore the stock will be seeking further gains until it ends the cycle from its 2009 low. Currently, JPM is advancing in the 5th leg of wave (III) which will be followed by a pullback in wave (IV) then again the stock will resume the rally higher.
JPM Monthly Chart 04.23.2019
Switching to the 4H chart for JPMorgan, we see the current bullish cycle, which started since the wave IV low in December 2018, approaching the target area around the 100% – 161.8% Fibonacci extension area of $115.40 – $126.10, from where short term pullbacks can be seen in 3 or 7 swings before further upside takes place.
JPM 4H Chart 04.23.2019
We use our proprietary pivot system to tell us when a cycle has ended, so we need to switch to a different degree. Consequently, as long as the pivot at the $98 low remains intact, JPM will remain supported, and it will be aiming to break higher above the 2018 peak making new all time highs.