By popular demand, another look at the Goldman Sachs (GS) chart, to provide insights into the plight of the financial sector and its Financial Select Sector SPDR (XLF). Let's notice that GS remains under its August-October support line, which was violated yesterday at 225.00 and which still presents serious resistance to any rally effort. Today's action, though mostly sideways, represents a digestion period -- a bearish digestion period -- in the aftermath of the plunge from the October 31 high at 250.70 into yesterday's low at 212.80. My near- and intermediate-term work argue for more downside after this "rest" period is complete, which should press GS to 200.00-196.00 next. Only a sustained climb above 225 will compromise my still negative near-term outlook.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.