By: Scott Redler
With Goldman Sachs (GS) triggering long last Wednesday, we were looking for follow-through moves in the financial sector. Today, Morgan Stanley (MS), JP Morgan (JPM) and Bank of American (BAC) opened the New Year notably stronger. Goldman started this move in the financials by breaking its downtrend line last Wednesday. Improved breadth on this move up in the financials bodes well for the broader markets.
We have been talking about the $15 level in Bank of America as a potential level for a swing long. The move through its downtrend line in the $15.30-15.40 area opens up the door for a move to the $16.20-16.40 area, with the potential for a gap fill up to $17.80.
