MIKE PAULENOFF'S ETF TRADING DIARY
I noted to subscribers yesterday that General Electric (NYSE: GE) continues to hover just above a critical long-term support plateau between 23.30 and 22.00, which if violated and sustained could trigger a powerful long-side liquidation that drives prices to 18.00-17.00 next. What is very worrisome is the sharply negative angle of descent of the 40-week moving average, which is similar to the price-MA juxtaposition that emerged on the downside after the peak at 60.50 in August 2000 that pressed the stock to 21.40 in October 2002. If a decline of similar magnitude is in progress now, GE must not break and sustain beneath 21.65 to avert a plunge towards the next intermediate-term swing target of 15.00.
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