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The Reason For the Market Comeback

|Includes: Goldman Sachs Group Inc. (GS)

This morning the major indexes all reversed lower from a gap higher open. However, one stock was strong during the morning selling assault and it was Goldman Sachs Group Inc(NYSE:GS). Goldman Sachs is now trading higher on the session by over 4.00 points to $151.57. When Goldman trades higher many traders and investors feel confident that this stock knows something that nobody else does. Therefore, others traders and investors will buy other stocks and often cause a rally.

Since Goldman Sachs Group settled with the SEC over fraud charges the stock has rallied sharply higher. In early July Goldman Sachs Group Inc was trading as low as $130.00 a share. The stock will have intra-day resistance around the $152.00 - $152.50 levels.

Nicholas Santiago
Chief Market Strategist