GE must pick up downward very soon.

Here is my prior post on GE.  Bottom line, I was expecting a 2nd wave bounce to approximately the level of $26.50 but instead I got something a bit more unusual.  At the same time, that strange triangle that I have been talking about is now fully understood.  What happened was as expected: after 5 waves down I needed to get an a-b-c into wave 2.  In order for GE to stall a bit while the rest of the market caught up, it executed a so called expanded flat which you can read about here.  Note that at this link, the bear market expanded flat is shown in Figures 1-35 and 1-36.  GE is now in a bear market.

That triangle that I was worried about was in fact a 4th wave triangle for which I put in the whole count in the new model to the right.  These triangles are in fact helpful in determining the true count since a triangle will always be the penultimate wave (b or 4).  Look how the 2nd wave bounce went all the way back up to the level of the prior 4th (which we can see only now after correctly identifying that triangle as a 4th.

If this model is correct then GE should now be done.  It will most likely begin tracing out a 3rd wave down very soon - likely this week but no later than Monday from the looks of it - and that 3rd wave should unfold with some power.  GE is not likely going to pull back on its own.  If GE goes down, all the major indices are going down.  Hold tight to your TVIX convictions unless and until the waves prove these models wrong!

Note: Friday is options expiration so it will be interesting to see if the markets props like everyone is used to getting or if they accelerate downward (which would be a sign of weakness in and of itself).