We discussed the near- and medium-term chart work on Goldman Sachs (NYSE: GS) during last evening's live Webinar. In a nutshell, GS has carved out a potentially lethal Double Top formation between last Oct. (193.60) and last week (186.41), with the critical breakdown plateau at 150-147.80. Should GS violate and sustain beneath the support plateau, the measured downside target is 110-100.

On any rally effort, GS will hit stiff resistance between 167 and 173, Both the developing chart pattern off of last week's high, and my perception of the hampered ability of the company to focus on business rather than its legal and PR issues, will combine to press prices towards a test of 150-148 in the days ahead. Whether or not the GS "issues" spread to other banking institutions is a big question at this time, but in any case GS will create a drag on prices in the financials for months to come.

By Mike Paulenoff

Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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