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Financial Stocks Rip, But Hit Resistance Here

Shares of JPMorgan Chase (JPM) and other banks/financial stocks surged for the third day in a row as interest rates spiked again. Higher interest rates mean more profit potential for the banks. While a beautiful bullish run, investors may want to temper their expectations of further near-term upside. JPMorgan slammed into a triple top today. This will likely result in a pause or consolidation period for up to a week before it can move higher. In addition, investors and traders will do well to remember the Federal Reserve meets next week on interest rates. This adds an extra layer of risk to the bank stocks. One wrong word from the Fed and banks could tank. If you are looking for further upside in JPMorgan, watch for a consolidation period (known as a bull flag). If this forms, there is significant upside to JPMorgan upon a break of the triple top.