Other Financial Markets Impact Stocks Unexpectedly
Relational Analysis™ Reveals Why
Why did J.P. Morgan Chase & Co. (NYSE:JPM) not rebound and rally when the Dow Index rallied this past week? Whenever a stock diverges from the index it is on especially during extreme sudden selling or sudden rallies, retail traders need to understand why the divergence occurred so that they can prepare for the near term price action. Relational Analysis™ reveals the “Why” behind the Price and Volume action in the stock chart.
As the Dow moved up strongly on Wednesday and Thursday with triple digit gain days, JPM which is one of the more important components continued to show strong sell side bias in its Candlesticks, Accum/Dist indicator, and in Volume. This is a divergence pattern that warns more is going on with the company than may first be obvious. The divergence is subtle but it is undeniable.