although the day is young and the stock is still halted as i type, it seems like GOOG most likely had what i recently referred to in this post as a “Point of Recognition” or “Oh, Sh*t!!!” moment. again, the day is young so let’s see how the stock trades once it opens and especially how we close the week.
as of now, GOOG looks to have sparked that P.O.R. moment with a text-book bull-trap move back below the recent breakout to new highs. in fact, i recently covered the price action in GOOG in this QQQ Top Ten Holdings video update, whereby i had highlighted the similarity between the recent price action with the price action leading up to it’s 2007 peak and the subsequent ~68% plunge in the stock. if this is the beginning of a larger correction for GOOG, the 3rd largest holding in the $NDX and 17th largest in the $SPX, it would be hard to imagine markets just shrugging it off. one by one, the market leaders are slowly but surely being taken out, regardless of the fed’s printing party.