Wednesday, June 15, 2005


I expected Google to hold support at 277 but instead the market broke nearly to 270 this morning. I think this is simply a normal reaction in an ongoing bull market. The drop now looks like a downward staircase of ¼ box steps with the bottom step at 272, the ¾ point of one of Google’s 40 point price boxes.

Notice too that the initial drop carried from 299.59 to 290.30 and thus defined a price box 9.29 points high. The bottom of the third box in this sequence is 271.72.

The reaction in GOOG has reached strong support once more and the market should rally now into the 308-311 range.

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