The GS weekly chart has reached the alert zone with a weekly 12 Combo and a daily 11. Although it can even drop another 10 points here as we make new lows but is a good indicator for the overall market. Around 60, it's a nice trade short-term as it will likely trade up to 100 at least. The last leg down has a magnitude of 130 so far, hence a 38% retracement gives us a potential of 50 points up and we are deeply below monthly Bollinger, which puts a good support for a bounce back. The 2002 low was at 58.57, so that might even be the extreme level for now but definitely a good trading buy around 60. Put Goldman on your radar screen since it's the best company but it could lose some edge as the Obama administration might replace some Goldman execs in the administration, although I doubt that since Rubin (ex-Goldman CEO) is a close advisor of Obama - just to name one.Starting with an upside gap/lap to turn negative is a classic bearish price action an, as stated in earlıer blogs, the market needs to complete some downside counts to be able to rally. Basically it needs all the year-end rally cheerleaders to capitulate to be ready to rally. VIX is back up to 60 again on its way towards 70.
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