JPM Update

If the problem which faces us is credit deflation, and if banks are going to lead the charge with massive liquidity (solvency) crises, banks should be a good indicator to watch for the broader markets.  The chart below of JPM suggests that a big 3rd wave ended with a rising contracting wedge back in April of this year which I reported on in these pages.  Since then, we had a retracement and then an expanding wedge to create a slightly higher high.

All bets are off if that blue rail is broken out of but I think it will hold.  I think JPM is already in a bear market now but nobody knows it yet.  Once that lower rail breaks down then the termination of the expanding wedge should be confirmed.  After that, probably a back test from below and then a massive collapse.