Morning Comment: Goldman Sachs (GS) testing KEY resistance

Despite the way it might have seemed, the stock market had really be trading in a relatively tight sideways range for the past two weeks...until Friday. Since the past two week had followed a very nice (6.6%) rally, Friday's nice gain begs the question as two whether Friday's action was the beginning of another leg higher for stocks.

To be honest, we do not think it will. As we mentioned in our weekend piece ("The Weekly Top 10"), the stock market has become quite overbought on a short-term basis...and sentiment has become much more bullish. Therefore, we believe the stock market is becoming ripe for a pull-back. Unless the trade negotiations completely break-down (like they did in May), the pull-back should not be an outright correction, but it could/should be a tradable one.

Having said all this, we do admit that a "melt-up" is possible. Therefore, if we're wrong...and the stock market does rally further from stock that has a lot of upside potential is GS. It is testing a key resistance level and any meaningful break above that level should help it outperform the rest of the market over the balance of the year.

To see the level we're talking about and to get his kind of guidance on a daily basis,please click here to subscribe to my investment newsletter, "The Maley Report" (

Posted to The Maley Report on Nov 18, 2019 — 9:11 AM
Comments ({[comments.length]})
Sort By:
Loading Comments
No comments. Break the ice and be the first!
Error loading comments Click here to retry
No comments found matching this filter
Want to add a comment? Take me to the new comment box!