Hi Tom, there were obviously some elements of panic 2 days ago, since we managed to regroup on wed. morning.
CD was most likely a very good buy on the weakness, look at the volume that swelled into it's trading on Tues and wed.
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The NYSE composite and the SPX chart are suggesting that we might have a retest of yesterday's low in the next week
stockcharts.com[m,a]daclyyay[pb50!b200][vc60][iUb14!La12,26,9]&pref=G
....maybe a higher low?
GE is a big market proxy
host.wallstreetcity.com
see how GE gave an intraday breakdown signal, when it fell below 36 yesterday. But it closed back above 36.
stockcharts.com[m,a]daclyyay[pb50!b200][vc60][iUb14!La12,26,9]&pref=G
Look at the massive volume that occurred yesterday, biggest since the Sept 21-24 low.
There is a massive bull-bear struggle going on in the Biggest market cap stock in the world.
(GE 361 billion: MSFT 339 billion.. and the mkt cap numbers change daily...)
GE is a great example of a company where the CFO and management know what the chart readers are thinking and if they can come up with a new business initiative; give positive guidance; or do an asset acquisition ...they will.
If they think 36 is untenable they will not. Considering the very big breakdown in the BKX index on Tuesday, and GE generating 60% of their business from their financial unit. This is a compelling time for GE and the BKX to not slide further and hold the line, or weakness below 36 in GE.
2 days of closes below 35.35 and especially 34.49 will be very bearish.
So let's see what happens. GE is 36.50 currently.
GE has been in a descending triangle since Nov and those normally do break down. |
