GE Update

I strongly believe that GE is already in a new bear market.  This is because of the clear 5 waves down that bottomed in late January of this year.  That was clearly a motive wave and while it is not labeled on the chart below I think it is wave 1 down.  Since then the chart has floated slowly and with much chop back up to the 61.8 fib.  I think we are near the end of wave 2 up.  If my model is correct it will result in a very nasty declining double top.

At this point it seems there is resistance at the 61.8% fib and support at the 50% fib.   This bouncing between those two levels during April and May has created what could easily turn into a head and shoulders formation.  The top of the right shoulder is beginning to look "heavy".

And so now we are at a major decision point.  If the chart heads down again per the orange line then it will have to break down below the 50% fib, the up sloping black support line, the up-sloping green support line and then finally the down-sloping blue support line.  If my wave count is right, all of this should play out in the next couple months as a 3rd wave plays out.  My target price for this break down is $22.  If this happens it is going to be a wake up call for the markets, a Prechter "moment of recognition".