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.
Listen to the markets ... they tell the real story.
Adam Hewison
