We didn’t like Google when it launched near $100 and we were very skeptical at $200. But now that it has broken down from its rising trendline support at $195 last week following a completed “five wave” advance we are convinced a major high is in.

Moreover, using Elliott Wave guidelines we see a perfect target at $160.

This level marks the previous wave IV support, is the 38.2% retracement of the entire rally and is a gap that begs to be filled.

We don’t trade individual stocks, but many of you do. For this reason we call to your attention a perfect example of Elliott Wave in action, arguing for a dramatic decline in Google. Of course, we should have warned you last week, but as we don’t trade stocks so it wasn’t paramount to our strategy.

© 2005 Jes Black
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