The GS bulls really tried to love the stock above my intermediate term TREND line of resistance pre-open (red line at $165.58 in the chart below), but the stock failed there, and it is now breaking down again on robust volume (21M shares by 11AM, when the 10-day avg prior to the news was 8.9M shares/day). Our updated line of immediate term TRADE line of support = $156.01.
I said this yesterday, and I’ll say it again. There is a bubble in US Politics that is going to stand in the way of this stock. If anything, this morning’s earnings are going to perpetuate that political bubble’s pressure. Between now and the SEC figuring out of there was fraud at GS, the company will have to get through both Senate Banking Committee meetings (Thursday) and the election in the UK (May 6th). Those forums will not be objective courts of civil law.
Keith R. McCullough
Chief Executive Officer