It will be a hectic week for stocks with a lot of economic data and the start of the earnings season. All of the big banks will give us an update on their businesses and, more importantly, a sense of the general trends in the economy. Additionally, we get two key inflation data points this week, from and .
S&P 500 (SPY)
The will enter the week trading just a touch off its all-time highs around 3,265. Not much has changed for the index, and based on the technicals; the trend remains higher. The index appears to have just broken free of a bullish pattern known as a Flag, and it would suggest the index continues to trend higher. For now, the next short-term level of resistance would come around 3,320.
S&P 500 Index Daily Chart
JPMorgan (NYSE:) will reports , and whether or not the company reports good results, I think the shares may be heading lower in the day and weeks ahead. The stock has had a tremendous move higher in recent weeks, and the RSI is now declining. Nothing dramatic, but a decline to $131 seems reasonable.
JP Morgan Daily Chart
Bank of America (BAC)
Bank of America (NYSE:)’s RSI is also changing trend, and the stock is sitting on support around $34.50. A decline to $33 seems possible.
Bank Of America Daily Chart
Did you see the news out of CES that Amazon Fire has more subs than Roku? It has 40 million to Roku’s 32 million. Perhaps that means that Amazon (NASDAQ:) should trade at 7.2 times one-year forward sales? Maybe, it sounds good, it would make Amazon the most valuable company in the world, with