While my near and intermediate term work argue for still lower prices in Goldman Sachs (GS) into the 146-144 area next, the public anger and political bashing of the company coupled with increasingly powerful oversold momentum readings suggest that a tradable low is approaching fast.

This means that should GS reverse to the upside from around 145, I would not be surprised to see a richochet rally to 155-160, prior to a resumption of medium term weakness that projects towards 144-140. As of this moment, I have no desire to "cath a falling knife," but I am on the lookout for a reversal and trading opportunity in the upcoming hours.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.