Goldman Sachs Group, Inc (GS) reported earnings this morning and blew away expectations as its prime brokerage, asset management, and equity underwriting divisions collected more cash then anticipated.

What does this mean for GS? GS has been forming a broadening formation over the last two years. Although I am not calling for GS to breakout of this formation, I am expecting it to test the upper limits of resistance and rally above 260 before the end of 2008. I will be watching GS carefully over the coming weeks and may add a position to our swing or options system on a pullback.



Andy Swan is co-founder and head trader for DaytradeTeam.com. To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.