The insider trading news, along with the mortgage crisis and perhaps an association with the Irish-EU banking crisis, have combined to clobber the major money center banks like Goldman Sachs (GS), JP Morgan (JPM), and Bank of America (BAC).

The way the BAC pattern is unfolding on the downside, my work argues that all of the price action from mid-October through the present represents a major bottoming period for the stock.

To get any traction on the upside, and to confirm that BAC has established an important secondary low in the vicinity of 11.30 and 11.00, the price structure must rally and sustain above 11.70. Let's see if BAC can claw its way back to test resistance at 11.60 during the upcoming hours.

By Mike Paulenoff

Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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