The first chart is the daily chart of Google, the second the relative chart of Google/SPY (click on charts to enlarge). What these two charts are showing is, naturally, the complete technical breakdown of GOOG over the past 2 months on an absolute as well as a relative basis. What they could also be showing, and that's pure speculation, is a potential zone of upside reversal. Why?
Well, the first chart shows that GOOG is fast approaching the 500 zone, a psychologically important level, as well as the August low. The second chart shows a GOOG to SPY ratio approaching 3.60, an all important previous key resistance. It's never superfluous to reiterate this cardinal rule of Technical Analysis that previous resistance levels become support levels. And I should add that the more significant the previous resistance the more significant the future support.
So I would watch the action on Google very closely this coming week. A bounce of Super Ball quality could just be in store. Funny anecdote, it's after watching his kids play with a Super Ball that Lamar Hunt, founder of the AFL, coined the term Super Bowl.
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