JPMorgan Chase & Co. (NYSE:JPM) pulled back last week as yields have fallen sharply on the horrible jobs report. Remember that since Dodd-Frank, banks are not able to make the same money they used to and must now rely on loaning money. And that means higher interest rates are very important for bank stocks. The lower interest rates go, the lower financial stocks will go.
As noted on the chart below, JPM is showing weakness, having fallen into a key trendline. As long as this trendline holds, the stock is not in freefall. But if it closes below that line, a breakdown will occur that will take JPM to $59.30, then $53.
Watch this line carefully as it's an epic level that every investor should be following.
