Intraday Commentary ~ 08/26/2010

4:00pm
GOOG has been looking very bearish all day, now that it’s below 460 support (the only support left before a double bottom), I believe strongly that GOOG is ready to fall to new lows. Google is now likely to fall to $400, and $393 the 61.8% retrace of the whole rally.

2:41pm
EUR/USD 1 minute has a pennant formation, be careful here as we could really fall down (dollar gets stronger) if we fall under 1.2696. This can bring a lot of weakness to the market:

2:18pm
GOOG can get ready to start falling hard very very soon. It’s been hanigng around the 450-454 area for a while, and even today it traded around there for a long time. With the market now falling, we can start seeing GOOG get hammered. here’s the 4 hour (notice we are below 460 support):

12:52pm
GS making new lows now… XLF will be draggin on the market. GS will find no support until $140 really. Here’s the 4 hour:

12:03pm
Market even on good news is not showing much of a rally here.. the fact that we made a new low (intraday) a few minutes ago does not bode well for today. But like i mentioned earlier, i expect a few days of sideways action, and tomorrow could be the start of a new move lower if we close below 105.80.
5:21am

Surprisingly enough the SPY found support yesterday right at the 104.65 level (with a quick 1 min breakdown to 104.20+). From then it bounced BUT it closed below 106. By forming a new low, we definitely have a trend of lower highs and lower lows. With that, it’s okay if the market bounces today and maybe even tomorrow before turning around monday AS LONG AS 108 is not violated, and favorably neither is 107.50.

Things get even more bearish is we break 104.65 today upon weak jobless claims. But after yesterday’s actions it’s not likely, unless data is very poor.

Here’s the daily SPY, leave your thoughts below!