BAC missed revenue and adjusted EPS expectations and took a $1.2B regulatory settlement; net interest income rose 8% y/y, but sales and trading fell 5% y/y and FICC trading 17%. Back at May 15 support, if buyers do not step in and it breaks down, next level is about $46.50.

Speaking of Bank of America this morning: a sharp drop in profits. It is clear that we received this penalty from the American regulators, which seems to be the main reason here.

Yes, I mean this reaction indicates a current 8.6% decrease.

Yes, we saw the company fail to meet expectations in both revenue and profits, with revenue reaching $30.12 billion. This is a 6.6% year-on-year increase, while market expectations were $30.69 billion for those results.

Adjusted earnings per share also came in at $1.08. The forecast was for $1.10. They also incurred the cost of a $1.2 billion regulatory settlement. They adjusted earnings per share by 17 cents per share, and we saw net interest income actually rise by 8% year over year.

So they still see some relative strength with respect to net interest income, but there is some weakness in other parts of their business, particularly in sales and trading.

That was down 5% year-on-year and was less than the guidance they gave about 4 weeks ago. Fixed income, commodities and currencies trading fell 17%, and they blame mortgages, municipal bonds and credit for the loss there.

So, unfortunately, they had an Office of Foreign Assets Control (OFAC) settlement, but they also failed in some other key areas. Now, if you look at it from a technical point of view, we are back to the low levels we saw in May of this year, May 15.

This is where buyers enter here. I will be very interested to see if some buyers will enter the market at this dip today at that key level, and if they don't, if we break the price down, we will start to look at the $46.50 level around.