This post is only really directed toward the people who keep asking
that question and I can only answer from a pure technical perspective
and my personal technical point of view.  If you are not interested in
technical analysis of stocks, or my technical analysis specifically on
goog, you may want to stop reading.

First of I want to say that I don't know any more about the future of
this stock than anybody else.  This is not FACT only interpretation of
the technical data up to todays close.  Any reference to the future is
only pure speculation on my part.

Why am I spending time writing this? I remember many sleepless knights
worrying about losing money when I didn't understand why my stock just
tanked.  I could never find anybody who would give me an honest
appraisel or teach me without an agenda.  I assure you, I have no
agenda except maybe help you sleep at knight if you are worried about
goog.

So, what is happening with goog?

From the beginning:

Google made a very spectacular move from $172.53 to $475.11,
consolidated a little, hit a low at $331.55 and made the second leg of
it's move to it's $747.24 high.  As technicians, we look at fibonacci
ratios and instead of goog making a 1:1  fibonacci as most stocks do,
it made a 1:1.382 (another ratio we watch) expansion in price.  From
it's low, the exact expansion target for a 1:1.382 move would have
been $749.66.  So, we can all agree that the fibonacci #'s are pretty
accurate guess'.

Okay, that's where we came from.  Here's where we currently are.

From the $747.24 high, we had huge volume off the top.  A combination
of a lot of profit taking by wall streeters and some serious
distribution by Google insiders (roughly 1.43 million shares since the
1st of September)

While all that selling was happening on the way down, the other half
of that huge volume (38 million in 3 days) was buying all the way from
$747 down to $626 at what they hoped was the bottom.  Unfortunately it
kept going lower.  Many of those people have been praying that goog
gets back to their entry price and if it does, they will get their
money back and promise their spouses that they will NEVER do that
again.

That creates the supply all the way back up to the high.  On top of
the regretful supply, is the insiders who were still distributing huge
amounts of stock up to as late as Nov.21 adding to the acceleration
down.

Now fear is the dominant emotion.  Goog hit a brick wall today at
$693.  Why $693? $693.84 was the closing price on the really big high
volume down day. 15 million shares worth of supply thankful to break
even or sell for a smaller loss. Okay, enough about emotions.

Wall street is full of professionals who all know about fibonacci
ratios, price points and volume and they are looking at the same data
we are.

So here's the technical picture that I see.

Aside from general market panic. Goog did exactly what it should
have.  Large expansion in price in two separate legs.  Hit a high and
is currently retracing as it should.  As ALL stocks do.  Looking at
the same fibonacci ratios, a typical retracement is around a .5 to .
618 pullback of the length of the entire second leg.

Goog is currently beginning it's 2nd small leg down.  The first was
from $747 down to $616, retraced up to $693 today and began it's
descent on accelerated volume.  If we pull a 1:1 fibonacci expansion
from the high to the bottom of it's 1st leg down, it retraced almost a
perfect fib. .618 (another important fib ratio) to $693.  The next leg
down should roughly equal the first leg down which puts us at a price
point of $562.18.

Goog will find some support in the $616 area and strong support around
the $558 area as there is big volume there.  And should eventually go
back to test the $747 high.

If you are looking to buy, I would look at the $560 area, if you are
long already and in it for the long haul, I would not look at your
brokerage account for the next month or so, it will come back.  There
are many charts of very good stocks that have set up very similar to
goog.

Goog is a fundamentally strong stock acting perfectly in this volatile
market.  That's it.

What I am saying is not Voodoo, or made up and it's definitely not
fact. It's one way of looking at this crazy market and for me it has
proven to be more accurate more often than not.

Do with it what you will.