Will GOOG volatility continue through Friday?

Price action and setup analysis

Stock index, chart, technical analysis Stock index, chart, technical analysis

If GOOG’s impact Thursday was exacerbated by expiration… then can expiration impact GOOG Friday? I’m not sure either one can stomach any further weakness from the other.

Pattern points… (Setups and technicals)

Thursday afternoon’s pullback was what the morning was expected to be, but longer and drawn out like the morning could have been, and ultimately held key support like the morning did. Recovering both 1448.50 and 1452.00 avoided threatening or invalidating Tuesday and Wednesday’s signals targeting new highs.

Longer, drawn out weakness during Thursday morning would have launched a durable afternoon rally to new highs, unlike the morning’s premature rally into the noon hour — it had not yet refueled enough to extend. The afternoon’s pullback offers a second chance for the setup to launch a rally that actually extends.

But the rally had better be underway at Friday’s open. Thursday formed most of a “pivot reversal” setup. Not disproving it by rallying immediately would be likely to prove it by gapping down under the afternoon’s 1447.75 low.

What’s Next… (Outlook and opportunities)

Friday is the 25th anniversary of the “Black Monday” market crash. Anniversary’s don’t have any presence in my work, except that focusing on it makes it unlikely to repeat.

Look for at least one update overnight or ahead of the Morning Market Tour… My thoughts on the day’s econ calendar are linked here.

About the Author
Rod David

Rod David develops analytical techniques that are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He primarily analyzes S&Ps, generating several round-turn candidates daily. Rod publishes "Trading Plan" and more each session at the blog http://IfThenSignals.com.

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