GE Update

Here is the back link to my current model for GE.  Today's action was pretty much what that model expected which was a 3 wave movement to about the level of the prior 4th wave.  This could still morph into a H.T. if it wants to in order to form the "real" 4th wave but I would have expected the typical 15 degree down slope of the top rail for that to happen and it did not.  So I have to stick with the view that wave 3 of [1] broke down the top rail and that 5 of [1] nearly kissed the bottom rail.  Given that a [1]st wave likely does not have the power to break down a support line that has been in place for so long, the chart retreated into wave [2] today in order to get a running start.

If this model is correct then we should see a gap down tomorrow which will take out the lower rail, likely back test it from below and then continue moving down.  There is a gap to fill shown by the pink rectangle and I will be watching the nature of the wave as it passes this section.  Does it pause there or just blast through like it didn't even know that the gap existed.  These are clues that can help us get to the right count.

Regardless of what happens tomorrow, GE has broken back into the HT channel after putting in 5 waves up following the printing of a the HT and that, folks, means a significant pull back is due even if this were just part of a larger bullish structure.  Of course, I think it is part of a larger bearish structure which has been in bounce mode since 2009 when GE traded under $6 per share.  I think it could easily BK in the coming liquidity (solvency) crisis.