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Shares of JP Morgan Chase are setting up well for a run into new all time high territory.  The stock is testing the April highs and is heading for its best close of the year.  JPM began to pierce a key overhead trend line that links the March/April highs last week.  Shares are gaining momentum now. 

JPM is far from overbought(daily MACD) despite remaining in a narrow range just shy of the March peak.  The 50D moving average is supporting this week’s low.  We believe the consolidation that began in late February set the stage for a fresh rally leg.  On the downside, a close back below $152.00 would violate this week’s low sending a clear warning sign that more sideways action is ahead. 

We are long JPM in some managed accounts.