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Posted July 1, 2026 at 5:43 am
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Alphabet got crushed for six weeks, then landed somewhere that matters.
The stock fell in six of the last seven weeks, its worst stretch since early 2022, right after briefly passing Nvidia in May as the most valuable company on the planet.
That kind of drop usually has investors asking whether the run is over. The chart says something more useful. The pullback has dropped Alphabet onto the exact shelf where a healthy uptrend is supposed to catch itself.
First, why it fell, because the reason matters less than where it stopped.
The selloff was about cash. Alphabet is spending up to $190 billion this year to build out artificial intelligence, and its free cash flow, the money left after the bills, fell 47% in a single quarter.
The finance chief then told analysts that spending climbs again in 2027, with no year named for when it eases, and investors who owned a cash machine started repricing a heavy-spending growth story instead.
The headlines piled on. Two of Google’s top AI researchers left for OpenAI and Anthropic in the same week, the rivals Alphabet is spending billions to beat. None of that is small, but none of it has broken the trend.
That is the part the noise hides, so zoom out to the weekly chart. Alphabet has been in a clear uptrend for more than a year, a steady climb of higher highs and higher lows. The recent drop did not crack that structure.
It carried price straight back down to the highs from earlier this year, the level the stock spent months pushing through on the way up.
That level is doing real work now, through a principle chart readers call polarity.
When price breaks above an old ceiling and later falls back to it, that ceiling tends to flip into a floor, because the buyers who missed the breakout treat the retest as their second chance. Alphabet is sitting on that floor today.
This is what a logical higher low looks like while it is forming. The trend is intact, the pullback is textbook, and price has returned to support rather than slicing through it. The weight of the evidence says this is the spot where the uptrend reloads, not where it ends.
The thesis has a clear line in the sand.
A weekly close back below those former highs would say the retest failed and the sellers have taken control, and that is the level to respect if it breaks. Above it, the burden stays on the bears.
For all the noise about spending and defections, Alphabet is a leading stock pulling back into support inside a trend that still works.
That is the setup worth owning, and the prior highs are the line that tells you the call is still good.
If you’d like to learn more about what we’re watching, you can check out our analysis on The Morning Show.
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Originally posted 30th June 2026
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