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The Wall Street Journal's MarketBeat Blog recently highlighted how Goldman Sachs has become the market's number one 'tell'. If you want to know where the market is going, just ask Goldman.

In the chart below, we plotted the returns of Goldman Sachs (left scale) vs. the returns of the S&P 500 (right scale). While the returns are vastly different, the two have tracked each other very closely over the period shown.

What does this imply for the market? Well, given then fact that GS managed to easily hold its lows from last week, this would imply that the market's reversal yesterday indicates a successful retest of last week's lows.

gs market tell

Source: Goldman Sachs: The Market's Number One 'Tell'