$GOOGL · Brian Shannon · 2026-10-31

you know, Google, Marvel, ServiceNow, Reddit, Hewlett-Packard, Roblox, Hood, and, you know, Coinbase and Circle, all had really negative reactions to earnings?

Let's talk about Google. It was destroyed here . I have pointed out on the X platform (Twitter) some levels of interest, and those levels included, as you know, the pivot point from this low level. And we are now there.

Then take a look at Fibonacci from there. We are at the 50% correction level. The most likely scenario here is that we, you know, probably break this low level first. So, we might see more weakness on Monday and then start to bounce back.

But that bounce could be, you know, 10 to 15% before it pulls back down again, and forms a lower high, and who knows, if you really want to think about the possibilities longer over that, you might look at it and say if we open up the chart a little bit, maybe it will create that...

Let's do this again, and maybe it will drop like I said on Monday, then we'll go up, and then over the next couple of weeks we'll do this, and who knows, maybe it will be with the next earnings report and we'll do this, and then what will we have ?

Then we will have the head and shoulders model. As you know, this is out of reach for several months. I will not make that prediction. I'm just saying that this is the way you should look at graphs: visualize possible scenarios and, more importantly, what you would do if those scenarios were actually what happened.

So, anyone who bought when Google's price was low, except in the last 30 minutes of Friday, is in a losing position. We are approaching an important level. So, if you are a short-term trader, wait until the buyers take control.

Let's look at a 5-minute timeframe because that is the VWAP indicator for Friday and we have passed it. You do not buy at the VWAP indicator crossover . You should ask: "How did the price get there?"

"It went up three points to get there ." No thank you. I'm not going to catch up with the price; it's high there. The daily VWAP index is lower than the two-day VWAP index. So, perhaps instead, let's take a look, let's go back to a 15-minute timeframe.

This is what I call scenario planning. We are simply planning for possible scenarios. We go down, breaking the lower levels we talked about , and perhaps after a few days, here is the reference from the earnings report.

So, maybe in a couple of days we will do something like this. Let's say we will continue to weaken on Monday and Tuesday. We ascend to that reference point and then retreat from it.

By that time , the 5-day moving average will look like this, and then on Friday, or Wednesday and Thursday of next week, we will start to look like this . We might get a bottom break, and guess what?

This might be a good swing trade against the descending 20, 50 and 200 day moving averages, but it could just be a bounce . What is your timeframe? You need to set rules for how to behave; that's what you need to do.