A little follow-up to the Google chart I posted last week...
Google Inc. (GOOG) actually closed under the lower trendline -- the bottom of the triangle -- yesterday. Today it continued to drop on increasing volume. That has to be worrisome for the bulls on especially on such a strong day for the general market.
It's now about 7% under its 200-day moving average, which is its steepest drop under that average. Another potentially bad sign is that it should have its first death cross (50-day moving average crossing under the 200-day) any day now. :-ss
That 2nd gap looks like a good long-range target given the Nazz has already smacked its own October levels. Looks like GOOG is just lagging...? Who can lead tech if GOOG truly crumbles?
AAPL can 'lead' the techs but I wouldn't write off GOOG because of the chart. AAPL had its 'death cross' last month. Now it's up almost 40%. And remember, GOOG spent some time under the 200dma in March, and a gap fill looked inevitable then. GL
I don't do anything based on moving average crosses b/c they're so late. I just like to point them out b/c many people use them.
AAPL is up b/c of its earnings. The death cross had nothing to do with that. GOOG has done nothing but slide post-earnings.
yes, I know GOOG spent time under the 200-DMA. I talked about that last week. The problem is that it's broken that several month long trendline. I'd key off of that instead of the 200 DMA.