Overlayed on these charts is an uptrending regression channel. Price is consolidating around the -1 deviation level of this channel. A sustained fall below this level could send price back down to the -2 deviation levels.
A downtrending regression channel is also overlayed on the 4-hour chartgrid of GS, C, XLF & JPM below. Price has been attempting to form a level of support around the "mean" while bouncing in between the +1 and -1 deviation levels and essentially chopping sideways in a volatile, wide channel at their 6-7 month lows. At the moment, the "mean" represents an important support level in preventing a return to the -1 deviation level below. These levels are:
GS = 129.00
C = 38.00
XLF = 14.75
JPM = 40.00
I would re-iterate the comments from my June 25 post which stated that, in my opinion, a meaningful reversal of the equity markets to the upside would need the Financials on board, as well.
As an update to my post on July 27, I would mention that the 100sma has now crossed below the 200sma on the Daily chart of XLF...a hold below and move lower would make a move higher in the equity markets more difficult.
Can the Financials deliver?...in the short term?...in the long term?...