Stocks Topped Out Again? Bank Earnings A Mixed Picture

After racking up impressive gains the first three days of the week, stocks took Thursday off, trading in a narrow range that may suggest to some that another topping pattern is forming.

The Dow, in particular, is retesting the highs from the end of October, when the index failed at a run to 18,000, and began a slow descent that accelerated in January to near full-blown panic.

As for the S&P, it remains just above water for the year, although analysts have repeatedly stressed the area of 2080-2090 as a key resistance level.

With another FOMC meeting in less than than two weeks (April 26-27), traders may be suffering from a case of frayed nerves, though considering the dovish tone coming from Fed Chair, Janet Yellen, any fears of a rate hike before June - at the earliest - seem unfounded.

Bank stocks have done well, with JP Morgan Chase (JPM) and Bank of America (BAC) both reporting earnings in line or above estimates, though revenues have fallen short for both firms.

Wells Fargo also reported before the open on Thursday, citing loan loss reserves in their energy portfolio putting a damper on first quarter profits. That was perhaps the souring tone the street did not expect nor want to hear.

Citigroup reports prior to the opening bell on Friday, looking for 1.03 per share for the quarter.

S&P 500: 2,082.78, +0.36 (0.02%)
Dow: 17,926.43, +18.15 (0.10%)
NASDAQ: 4,945.89, -1.53 (0.03%)

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