Cold Shoulder: Goldman Warns If 1,040 Is Taken Out In S&P, 865 Is Next Stop

Tyler Durden's picture

Here is why the entire Liberty 33 trading desk is set on preventing a break of 1,040 in the S&P - as Goldman's trading desk technician John Noyce warns, the next stop in the head and shoulders formation, should 1040 be taken out, would be 865, not to mention a complete rout for global teleprompter stocks post the mid-term elections.

From Goldman:

  • The S&P fails to sustain above the 200-dma with a clear risk of an H&S top forming…
  • Early last week the market moved above the 200-dma which argued for some ST stabilisation and the chances of a deeper retrace of the drop from the April highs.
  • The break however failed to yield any meaningful rally and the market has now moved back below the 200-dma on a close basis.
  • As discussed over recent weeks the underlying structure of the market has a negative setup and you can now also argue an H&S top is in the process of forming.
  • The interim low from 8th June and the neckline of that pattern are now converged; 1,042-1,040. This region
    also represents the first notable support below current levels.
  • If a break below the neckline of the pattern can be achieved as looks the risk on a multi-week basis the target would be 865.
  • Overall, the market structurally looks a sell on rallies with the MT-LT (multi-week/-month) risks on the downside.

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doolittlegeorge's picture

yeeessss.  "If I can't have you than nobody can America."  Did someone just say "start shorting Goldman"?

pan-the-ist's picture

My guess, the market is down today because finreg is still being debated and it will continue to be down until it is gutted. Then, almost magically, when the bill is passed and signed into law, the market will be back up as the MSM takes the collective eye off of reality and puts it back on unicorns and faeries.

*disclaimer* I am not invested and this is not sound financial advice.

Pez's picture

PPT to save the day! Another day and they staved of the econ-terrorist, Goldman Sachs. Will the stockmarket periliously plunge to the depths of damnation? Will the US market lose it's glitter in young trader's eyes? Will librarian Nell who invested all her life savings in mutualfunds ever get to retire? Tune in tomorrow for another episode of: "Only the shadow government knows!!"

ATG's picture

Never fear - Abby's looking for a big one...

Turd Ferguson's picture

No shit. I wonder what the old hosebag, AbbyJC, thinks of this...

Cognitive Dissonance's picture

As it is spoken, let it be true.

Karma demands we re-visit 666, but that would be too good to be true. I'm loaded for bear and up to my neck in shorts. The trend has changed. The only question is when does this down trend end?

LeBalance's picture

You are so right. Goldman speaks and so it shall manifest.

nonclaim's picture

I read it as "if we can't save 1040 we'll drive it to 865" and they'll make another 100 million either way, everyday.

ATG's picture

Maybe not this time.

Testicular Cancer's picture

So it is written, so it shall be done.

VK's picture

SPX 100, go long till 200 then ZERO. Game over.

ATG's picture

SPY targeting 90.

RichardENixon's picture

Somewhere around S & P 500, Dow 5,000, Gold 5,000 is my guess.

Johnny Bravo's picture

That's what you get for "guessing."

RichardENixon's picture

We'll see Johnny. I hope my guess is wrong, but I've been guessing pretty accurately since 2007.

Dont Taze Me Bro's picture

I guess this means that PPT will be busy during the next couple days.

MarketTruth's picture

Couple  days???  Try couple of hours. PPT action begins at 3:15pm today to be exact.

Could be 'breaking news' on something that then is used as a fake way to prop this dog of a market. Remember how many times this happened in 2008. SSDD.

Dont Taze Me Bro's picture

I guess this means that PPT will be busy during the next couple days.

rolo's picture

I was bearish before I read this but given Goldman's record lately, I'm wondering if I shouldn't be long...

Mitchman's picture

But I thought Obammy and the Berbungler just told me the recovery was doing great?  WTF?

GoldmanSux's picture

But I just saw Abby Joseph on CNBC yesterday, and she said.....

Ethics Gradient's picture

I'm not naturally contrarian, but coming from Goldman, that's got to be a signal to buy.

Maybe QE - the sequel <voiceover>Bigger, badder, tougher than before</voiceover> is closer than we think.

Turd Ferguson's picture

Actually, I'd expect the S&P to drop through 1040 just to suck in a bunch of new shorts that GS will gladly fill. Then a big FuckYou rally back up to 1080.

Mr. Anonymous's picture

Oh yeah, this is a total short-squeeze set up at the neckline.  Over on Ritholz's blog, there's talk of the bouncey effect of failed Head-And-Shoulders.  Straight to the moon if supports holds.  The neckline on the Chart at 2150 and Nazzy there holds.  GS coming out with its report is pure scamming to suck in shorts for fuel.  Sorry, no deal.

It's impossible to play this market short or long.

Cleanclog's picture

Rigged rigged rigged.  And some wonder why consumer confidence is down.  Howz about cuz no one trusts markets, currencies, governments or corporations anymore.

RichardENixon's picture

Could be wise to be ready to play it long till November, after that it's "Katie bar the door" as those wacky oldtimers used to say.

DosZap's picture

Mr. Anon,

Yes sir, GS got your nads either way...........they always win, even when we think they lose.

They simply a (New Acronym), ..........................



"It's impossible to play this market short or long."

homersimpson's picture

Hmm.. where did I see this before.. ^GSPC hits around the 1040 range.. and magically jumps up in very short time periods during off hours due to a firm or two buying up what they can to make the market look better than it is.

Oh yea.. that happened a few weeks ago. JP Morgan if I'm not mistaken.

vote_libertarian_party's picture

...soooo it's safe to assume that GS has their shorts lined up now???

buzzsaw99's picture

They speak of the market as if it is something powerful and beyond their control. Puhleeze! The squid sets the market, the squid is the market. All this, oh gee, we don't know what ever is going to happen! Claptrap is amusing.

SheepDog-One's picture

If Goldman says so, then it shall be. Theyve got to create some mass panic for announced $5 trillion printfest.

John Law's picture

We have to make it through 975 first. That markes bear market territory. You can bet it will be all hands on deck there. I think they may hold it for a little bit but it will fall through as the data continues to deteriorate.

Turd Ferguson's picture

Has anyone heard anything out of Louise Yamada lately? I'd be very curious to hear what she makes of the recent S&P moves.

New_Meat's picture

Rosie talked about her a couple of weeks back, some NY conference.

She's been on Bloomberg and stands on her SPX 600 and maybe later 400, no time frame as a good technician would.

- Ned

LoneStarHog's picture

Just wait until the 50-DMA crosses below the 200-DMA, which is very close to happening.  It has already occurred in the last week in several global markets (e.g. FTSE).

Turd Ferguson's picture

About an hour ago on CNBS, Matt Nesto said, when discussing the 50-day/200-day crossover: "Mother of God. Look out below".

LoneStarHog's picture

Yup!  In the laws of physics, it is the only thing that can tank faster and farther than ObamaRama's approval rating.

taraxias's picture

Why would anyone trade based on TA now is beyond me. It's like playing Texas Hold'em in Vegas with the cards in front of you facing up. Stupid.

firstdivision's picture

Because algos cannot be programmed to follow intuition, so TA it is.

Vampyroteuthis infernalis's picture

I am waiting for the latest dead cat bounce to occur. The squid has spoken and it will be done.