Goldman Sachs Group (NYSE:GS) has broken a head-and-shoulder neckline, a bearish pattern that when breached, usually signals a large drop ahead. The whole financial sector looks extremely weak and head-and-shoulder patterns are everywhere.
The Trigger
Citigroup (NYSE:C) is another great example; but it has yet to cross its neckline. The neckline is a trigger for the epic downside move to target. With so many horrid chart setups in the financial stocks, it seems likely that something big is on the horizon that will cause a quick, sharp decline to target. Goldman Sachs' downside target, which is calculated precisely, is well below $140. Look for sharp declines in the coming weeks on all financial stocks.
