Has the bull run ended for Google?
After reaching a record high of $747.24 on an intraday basis on November 11th Google proved that gravity does indeed exist as its stock plunged over $120 in just 4 trading days!!
The old market adage was proven true again: "They slide faster than they glide"
So what is going on in Google(GOOG)?
After the 16% drop from its recent high, Google barley managed to rally back to the $675 level before succumbing to selling pressure later in the day. While the rally of over $50 a share from the low seemed like a big deal it only represented a 38% recovery and was not impressive.
We expect Google to be more of a two way street as it's bread and butter income advertising begins to soften based on a weaker outlook for the economy. Look for more sideways action and a retest and possible break of the recent low of $626. As we have said before on this blog, perception is everything in the market.
Seventy percent of our technical indicators are not looking rosy right now for Google.
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Listen to the markets ... they tell the real story.
Adam Hewison