GE groundhog day update

I believe that as GE goes, so goes the market.  The main reason for this is that GE is a microcosm of the entire global market which is, in aggregate a vendor finance scam based on a global debt Ponzi supported by the fraudulent concepts of fiat currency and especially fractional reserve banking. We have been taught that this is all normal and sustainable but history, logic and math don't agree with that conclusion.

In any case, here is the back link to my previous post on GE which, given 5 waves up following a 4th wave H.T., predicts that we either get a 3 wave pullback and then higher highs as the 5th wave continues to unfold OR the start of a massive new bear market for US shares.  As you can see from the actual data below, the jury is still out.  What I have labeled as red 1 is right at the 38.2% fib which acted as support.  But after that we did not get the start of a new motive wave.  Instead we got a 3 wave retracement and then a move back down.

This could still turn into some kind of inclining double bottom - the herd has allowed for that.  In fact, the recent move down could be interpreted as a B wave in and of itself which would lead to a higher high than red 2 which basically fills the gap at 26.80 before moving back down into the real 3rd or C of 2 of 5.

So again, we are still working through GE ground hog day: with the choice being whether to begin the crash now or wait until early next year.  If we see a big gap down next week that takes out both the upper and lower rails of the 4th wave HT then I think we will have our answer.  This is currently my primary model: a gap down through both rails followed by a back test from below and then a move down to the next support line shown in blue.  That would be the new intermediate degree wave 1 down.