December 19, 2017

Monday Google pressed new highs, but Tuesday closed out the day with a Harami Sell signal. Watch out for today. A negative close today boosts the negative outlook with the emergence of a Three Inside Down pattern. In this event, it will most likely mean that there will be a “little coal in Google stockholders stockings for Christmas”. This signal should not be taken lightly.

Do not take this Sell signal lightly. A negative close today is a very Bearish indication that this stock is in a short-term corrective phase. How strong of a turn? 10% slide for the holidays? End of year profit taking? These are tough questions with the U.S. Tax reform still in question. As it stands now the Bears are ready to make a run for the 1056.83 Support level. This is about it for a Sell off if it is just a temporary turn South. Be careful Buying into this move. A failure at 1056.83 should add to downside momentum as the market unravels. 1043.53 and 1033.21 are the extended objectives for an extended slide. If the stock slides back into this lower area it should find relief and bounce. This would be a healthy correction that would give Google stock room to hold strong and bring back the Bulls.

All bets are off under the 1033.21 level. Trading under here is a negative indication that the stock is set for a correction that could drop the market back down to the 971.50 level. This scenario would be a healthy Break that would fill the downside gap and leave the Bulls salivating for a strong Buy level to jump on. The sky is not falling, and the overall strength of the market makes it hard to be a Bear for this stock. Google is a big part of the overall market rally, and if this move manifests, it would be a healthy pause in momentum before the next leg up to new all-time Highs. Keep your Stops tight to the Long side until the Tax reform is confirmed, and also until there is a strong Buy signal.