GE: Declining double top finishes with 2nd wave ending diagonal.

General Electric has been fooling around its top channel rail for several weeks now but as the DJIA breaks down its ending diagaonal I think GE is breaking down as well.

First off, we have ye olde declining double top (Owl Ears) that have formed conveniently along a line that is just about parallel to the already established lower rail.  I don't care what anyone says, I don't care what the fake fundamental say.  This is bearish and GE is going down hard from here.

Below is a close up of that declining double top with the left ear peaking late December and then the cliff plunge into the beginning of Feb.  Those 5 waves down into black 1 are so clear that I won't even insult you by labeling them individually.  They are classic Elliott.  Since then we have had the raggedy chart action which is so indicative of corrective waves.  These waves formed a clear ending diagonal made up of 5 waves, each with an a-b-c structure as they should be.  The whole thing ended with C of 5 wave throwing over only to quickly come crashing back into the channel.  This is absolutely bearish.  It has now broken back down below the down sloping parallel channel rail whose starting point was the pre-2007 peak.

 

GE will collapse from here as the credit markets rapidly dry up because it is little more than a shadow bank running a vendor finance scam.  When I first reported on the horrendous Altman Z-Score of GE it was still 1.3.  It has since deteriorated to 1.28.  

 

 

Keep in mind that the last Z-Score reading was in December of 2013.  The economy is supposed to have been improving since then!!  So why did GE nudge another step toward BK in that time??  And why is the main stream media not talking about the risk of this "blue chip" Ponzi scheme?  Folks this POS has only $11.7 bn holding down $380bn in debt.  How long do you think that is going to last when:

• Those who GE has loaned money to in order to buy their overpriced products fail to make payments?
• GE is unable to roll the debt over cheaply as interest rates rise?

Every financial analyst on the planet right now thinks GE is a solid investment because they only look at quarterly profits without considering the debt.  You can get away with that as long as the inflation keeps their debt fueled growth ahead of the debt service but when the credit collapses the debt fueled growth collapses while at the same time the debt service increases due to needing to constantly roll debt over at higher interest rates.  That double whammy is how a big company like GE can collapse within a very short time.