GE update and again crunch time.

Check out my Monday and Tuesday posts on GE and then compare to what we actually transpired below.  Tuesday's chart actually indicated that 5 of 1 would bottom at $24 and that wave 2 up would hit the low $25 range in a back test to the orange line.  After that I expected wave 3 to unfold in a shocking way.

Well, today's massive, massive 421 point move up resulted in a 2.43% bump for the DJIA but only .67% for GE.  GE simply did not want to break into the channel and move over the top rail as that would be a very bullish move.  The 38.2% fib would be $25.22 which also happens to sit at mid channel of the rapidly narrowing HT so GE might still hit that before turning down but the odds greatly favor a coming break down.  If this model is correct, this is where GE puts will begin to shine.  The play is clear: wait to see if the chart can break above the top rail or not.  If it can't then scoop up the puts or short this pig (or buy UVXY) because the next move down should be a 3rd wave screamer.

As usual, trust but verify.  The positive verification (confirmation of more downside will be a lower low than blue 1 which is @ ~ $24.