Goldman in Bearish Digestion
By Mike Paulenoff, www.MPTrader.com
By popular demand, another look at the Goldman Sachs (NYSE: GS) chart-- to provide insights into the plight of the financial sector and its Financial Select Sector SPDR (AMEX: XLF). Let's notice that GS remains under its Aug-Oct support line, which was violated yesterday at 225.00 and which still presents serious resistance to any rally effort. Today's action, though mostly sideways, represents a digestion period -- a bearish digestion period -- in the aftermath of the plunge from the 10/31 high at 250.70 into yesterday's low at 212.80. My near and intermediate-term work argue for more downside after this "rest" period is complete, which should press GS to 200.00-196.00 next. Only a sustained climb above 225 will compromise my still negative near-term outlook.