Our bellwether Goldman is not yet a weak stock, but its long-term charts are starting to show clear signs of fatigue. It began with the failure of the early-August peak to surpass another that had been recorded a month earlier at 172.45. The stock has since recovered somewhat to create a bullish impulse leg on the weekly chart, but it required a short pullback and a running start to succeed. In addition, the retracement since then has been nastier than we might have expected if the stock were still rarin’ to go. If GS settles below 157.20 this week — unlikely, I should think — that would create the first bearish impulse leg of weekly-chart degree since the one in October ‘08 that telegraphed Goldman’s collapse to a bear-market low at 47.41.
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