A good reason to remain vigilent about a strong second wave retracement on the DJIA

In this post I examined the GE chart using the log scale.  What I saw was interesting.  In short, the wave count seemed to be setting itself up for one move higher.  Since then, the setup has continued and now I need to report on it so that people can keep a weather eye on this one.  The chart below is not log scale.  It is mainly there to show that the count could be trying to pull a fast one on us.  What is marked red 3 has a similar shape to a rising wedge.  The we got a perfect a-b-c-d and are now in E wave throw under.  If this breaks back up into the channel (the purple line, be afraid shorts because GE will not likely be going up alone.  A strong run into wave 2 on the DJIA could do it along with some cheery (but bullshit) new on GE such as trumped up earnings, etc.  If the economy is bad, GE is not doing well, end of story.  Either that or it is just a global money launderer anymore.

Watch that lower purple line!