The JPMorgan Equity Premium Income ETF (JEPI) fund rose and is nearing at its all-time high. JEPI was trading at $57.2, a few points below the all-time high of $57.56, up by almost 20% from its lowest level in April this year.
Top catalysts for the JEPI fund this week
JEPI, the biggest covered call ETF in the world, will be in the spotlight this week as investors react to some major catalysts. The first major catalyst came out on Sunday evening when Donald Trump reached a deal with the European Union on trade.
The US will charge most European goods a 15% tariff, with steel and aluminum being charged the existing 25%. At the same time, the European Union committed to investing billions in the United States and buying more energy products.
Traders will watch for more trade deals with other countries. The most notable of them will be India, South Korea, Brazil, and China, whose officials are holding talks in Sweden.
The other major catalyst will come out on Wednesday when the Federal Reserve delivers its interest rate decision. Historically, the Fed meeting is often one of the most impotant catalysts in the financial market because of the impact of interest rates.
This meeting will be watched closely as it comes at a time when the Fed is facing substantial pressure from Donald Trump, who has called for major rate cuts. He believes that the bank should cut rates to about 1% and then hike them if inflation rises.
This meeting will likely have a limited impact on US equities unless the Fed hints of rate cuts coming soon.
The JEPI ETF will also react to other major events from the United States, including the upcoming consumer confidence, GDP, and nonfarm payrolls (NFP) data.
The other most important catalyst for the fund is the upcoming US earnings as most of its constituent companies will publish their results. Some of the most notable companies to watch this week will be Amazon, Microsoft, Meta Platforms, ExxonMobil, and Chevron. Over 60% of all companies in the JEPI fund will publish their earnings this year.
JEPI ETF stock price analysis
The daily chart shows that the JEPI stock price has been in a slow uptrend in the past few months. It has jumped to $57, a few points below the all-time high of $57.56.
This was a notable level because it was the highest swing in December last year and February this year. As such, the stock is about to form the triple-top pattern whose neckline was at $48.67. A triple-top is one of the most bearish patterns in technical analysis.
The stock is also forming a bearish divergence pattern as the Relative Strength Index (RSI) has formed a series of lower lows and lower highs. Therefore, moving above the resistance level at $57.6 will be important as it will invalidate the bearish view and point to more upside, potentially to $65.
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