GE update

General Electric shares are now in the process of breaking down.  They are accelerating to the downside.  Here is the previous post.  Note how the model back then closely matches today's reality shown below.  I am not sure if the red numbering is correct.  What I have labeled as red 1 (1 of blue 3) could in fact be all of blue 3 but I doubt it.  We need to light this candle with flair and so I think we should see an extended 3rd wave down play out soon.  The presence of a gap, while not required, would tell us that a 3rd of 3rd is likely in play.

Keep in mind that wave 1 down already played out at the start of the year so we are certainly in 3rd wave territory now.  Wave 1 could not break down that long support line but wave 3 took it out like it was nothing, and then back-tested from below into wave 2 and then dipped $1.50 to the mid $25 region where it stands now.  The herd is getting a bit worried because the 2016 puts that I bought are starting to catch a bid.  Another month and they will be deep green IMO.  3rd waves up or down are always the best time to buy options.  GE will not be breaking down by itself folks.  There is trouble afoot and GE shares are clearly indicating it.