Air Pockets Under Those Goldman Slacks

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The chart of Goldman Sachs remains ominous, as you can see the longer-term look below. On the monthly chart, note the huge “void,” or air pocket, that was created with the 2008 crash and subsequent V-shaped recovery in 2009. A consequence of these air pockets is that price can move quickly once it gets going back into the void, with little memory to get in the way. There is some support in the low-$80’s dating back to 2004 that bulls are counting on for now. However, if price moves below this area I expect a fairly quick retest of the 2008 lows of roughly $47-$60, as scary as that sounds. Watch the low-to-mid $80 closely.

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