Why We’re Watching Goldman Sachs Divergence From The Market

Welcome back everyone! Let’s take a look at a couple key things to note this evening!

I want to look at the NASDAQ and the RUSSELL compared to the DOW and S&P. I told you all on Friday that if we got above the channel, that the market would be free to power higher. I was focusing on long side trading in the Live Trading Room. We had a challenge point where the market failed on the S&P and DOW. We had falling resistance levels on both of those. That caused the market to back off. This is very important because we are looking for a bigger picture perspective. I want to look at that to see if the market can get out of the trading ranges. They could end up powering ahead or failing miserably.

I want you guys to see what is happening with Goldman Sachs. This is in the process of being weaker right now than the overall market. You will notice that it is stronger than the underlying Goldman Sachs. Historically, when one is going up, the other is going up at the same time. We look at that as a barometer to see if it is a whole market type of thing. The last two weeks has been holding up Goldman Sachs. Goldman Sachs has continued to fall. Goldman Sachs did lock in a very nice accumulation bar on the daily and weekly charts. Whether you trade stocks, futures, options or whatever it is important to see what we are looking for here. If we start taking off to the upside, I want to see the DOW and S&P get through that upper channel. I also want us to get above the upper resistance. Those are the 2685 on the S&P and the 24521 on the DOW. I want to see Goldman Sachs go along with the party as well. I am going to be alarmed if Goldman Sachs turns around and goes back down. The market may decide to catch up with Goldman Sachs. That could lead to some very heavy selling. That is why we are paying very close attention to that.  If we start deteriorating that could lead to some heavier selling in the market.

Were right at the $70 mark on Crude Oil. This could be a key one to watch! If we push through here, pull back, and make this support this could see much higher prices in Crude Oil. These are very important levels. We are flirting with that $70 mark now! You guys have a great night and I look forward to seeing you all in the Live Trading Room or in tomorrow night’s videos!

To learn more about Rob Hoffman Trader visit www.becomeabettertrader.com

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