I said that as SPY goes, so go other stocks too -- and Google (GOOG - Get Report) demonstrates my point. While the degree of Google's price action has varied from SPY a bit, it's clear that the uptrending channel is keeping the search engine giant's shares in check too.
That price channel gives traders a high-probability range for GOOG's price action to stay within. Now Google's shares are testing support at that critical trendline level. When you're looking to buy a stock within a trend channel, buying after a bounce off of support makes sense for two big reasons: It's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong). Wait for the bounce in GOOG before you decide to put your money on this trade.
Momentum, measured by Google's 14-day RSI line, has been adding some bullish confirmation to this setup for the past few months. RSI has remained in an uptrend through all of GOOG's corrections this year, and that uptrend is remaining intact now. Since momentum is a leading indicator of price, that's a very good sign for Google bulls.If you deicde to be a buyer here, I'd recommend keeping a a protective stop at the 50-day moving average.