GOOG Update

I actually have 12 GOOG charts as there were quite a few things to see, but to be 100% honest, I'm on my 12th hour today and my wrist is starting to rally throb from so much typing so I'm going to abbreviate the GOOG post to a couple of charts...

 Th daily chart and close tell us several things, first the long upper shadow on today's candle is bearish, it's higher prices being rejected most commonly because of overhead supply/resistance. GOOG did break above the recent highs so it opened up a lot of demand, demand is essential for distribution, especially at these levels, but that's not where the overhead supply is, it's from Sept./Oct., I'll show you how I can confirm this below.

The daily candle is a bearish candle, almost a shooting star if the upper wick were a little longer, the increasing volume makes it a higher probability reversal candle, even though it didn't quite make it to a shooting star.

 The daily chart showing distribution at Sept/Oct. is a strong signal and being there were a couple of new highs in the area, bull traps would have been set, thus there's still bulls trapped and overhead supply.


 This 3 min chart first caught my attention with a leading negative divergence, but these could be found in a number of timeframes today.

For the length of this move, this 5 min leading negative nearly to a new low is one of the more impressive, this has all the hallmark signs of distribution, smart money doesn't chase stocks that are up over 5% in a day, they sell them., I think I talked about that last night. In any case, GOOG is on my radar for other reasons that date back a longer ways so I'll be looking for opportunities here, perhaps puts, maybe an equity short add to.

One of the messages here is GOOG is a bellwether as is AAPL and IBM also had some not so hot signs today, yo can't ignore even these smaller details. There's rarely a smoking gun, it's a lot of detective work that gets us the best set ups.